RBI Tightens Rupee Defense as Pricey Crude, Foreign Outflows Bite: USD/INR

RBI Bolsters Rupee Defense as Oil, Foreign Outflows Take Toll Good morning... I’m Samie Modak in Mumbai, as beleaguered rupee watchers look for some relief. The currency — Asia’s worst performer in 2026 — is expected to advance early on Monday after the Reserve Bank of India over the weekend announced some of its strongest support measures since the 2013 taper tantrum, as we write below. That said, the steps have also raised one key question for investors: how far is the central bank willing to go as elevated oil prices wreck the rupee? In equities, the benchmark Nifty 50 managed to eke out a gain last week, snapping the longest run of weekly losses in 25 years. The selloff has eased valuations, likely offering an opportunity for bargain hunters, as we write below. As for Monday, an advance in US stock futures and a decline in oil prices should help buoy sentiment for the rupee and local shares. The focus later in the day will be on September’s inflation report and earnings from companies including HCL Technologies and ICICI Prudential AMC.