Rupee Slips to ₹96.88 on Oct 8, 2026 – RBI Says It May Be Undervalued

What happened on October 8, 2026?

The Indian rupee slipped to a 13‑paise loss, closing at ₹96.88 per U.S. dollar on Thursday, October 8, 2026. It opened at ₹96.71, touched an intraday high of ₹96.65 and a low of ₹96.79 before settling at the provisional close. [1]

Key drivers behind the dip

• Global dollar strength – the DXY index was trading near multi‑month highs, putting upward pressure on the rupee. [1]
• Brent crude prices hovered around $104 per barrel, adding cost pressure for an oil‑importing economy. [1]
• Geopolitical tensions and risk‑aversion in global markets amplified volatility. [1]

RBI’s stance on the rupee’s value

During its Monetary Policy press conference, Governor Sanjay Malhotra said that, based on several measures including the real effective exchange rate (REER), the rupee is not overvalued and may actually be undervalued. He added that the RBI will intervene only to curb disorderly movements and will not defend a fixed exchange‑rate level, allowing the market to find the rupee’s underlying value. [2]

The governor emphasized that the RBI will “ensure that the rupee stabilises … and that there is no excessive volatility” while supporting an orderly movement. [2]

Implications for businesses

• A weaker rupee can boost the price competitiveness of Indian exports, converting foreign‑currency earnings into more rupees. [2]
• However, higher costs of imported crude oil and other input materials can offset export gains and feed into imported inflation, a trade‑off the RBI must balance. [2]

What the Google Trends signal means

The term “usd inr” has shown a 50 % growth in searches and about 1,000 daily queries, indicating increased public interest. [3] The trending status, however, does not confirm any change in the market rate; it merely reflects search activity.

Key take‑away

On October 8, the rupee slipped to ₹96.88 per dollar amid a strong dollar and high oil prices. The RBI acknowledges the rupee may be undervalued but chooses to intervene only to curb disorderly moves, not to defend a specific level. Exporters may benefit from a weaker rupee, but importers will face higher costs, and the central bank’s focus remains on managing volatility rather than fixing the rate.