Rupee appreciates 11 paise to 95.17 as U.S. Fed keeps interest rates steady
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Monetary policy and exchange rate dynamics: a key GS3 topic on capital flows and currency stability.
Why in news
The Indian rupee appreciated by 11 paise to 95.17 against the U.S. dollar after the U.S. Federal Reserve maintained interest rates at 3.75%–4.00%.
Background
On October 29, 2026, the rupee reached 95.17 against the U.S. dollar. The U.S. Federal Reserve kept interest rates steady at 3.75%–4.00% while Brent crude was trading at $114.13.
Facts for Prelims
- FactRupee exchange rate: 95.17 against the U.S. dollar as of October 29, 2026
- FactU.S. Federal Reserve interest rate: 3.75%–4.00% as of October 2026
- FactBrent crude price: $114.13
- FactForeign Institutional Investors (FII) equity purchase: ₹871.83 crore on October 28, 2026
Prelims practice question
What was the price of Brent crude recorded in the note?
- (a)$120.00
- (b)$114.13
- (c)$98.25
- (d)$105.50
Show answer
Answer: (b) $114.13 — The note states that Brent crude was trading at $114.13.
For Mains
Q. Analyze how the monetary policy decisions of the U.S. Federal Reserve influence the stability of the Indian Rupee and capital flows in the Indian equity markets.
Dimensions to cover in your answer
- Monetary transmission: Impact of Fed interest rate parity on FII capital outflows
- External shocks: Correlation between Brent crude price volatility and Rupee appreciation/depreciation
- Currency volatility: Influence of global liquidity on domestic equity market stability
Keywords: Monetary Policy · Exchange Rate · Foreign Institutional Investors · Capital Flows · Interest Rate Parity
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