Last updated: 23 October 2026 · By Analyst, Platizio Global
One US dollar cost ₹94.6986 on 22 October 2026 at the Reserve Bank of India’s (RBI) reference rate: 5.3% more than at the end of 2025, but 1.8% less than on 6 October. The reference rate’s 2026 high was ₹96.8441 on 20 May, the day the rupee hit a record trading low of 96.96 per dollar (Reuters). For Indians investing in US shares, the weaker rupee has lifted rupee returns, but every new dollar costs more rupees.
Key takeaways
- The reference rate’s 2026 range is ₹89.893 (8 January) to ₹96.8441 (20 May); over 10 years the dollar has gained 41.6% against the rupee.
- Costly oil, record foreign selling of Indian shares and high US bond yields drove the fall; the RBI raised its repo rate to 5.50% on 7 October.
- Over the 10 years to 22 October 2026, the SPDR S&P 500 ETF (SPY) returned 318% in dollars and 492% in rupees; since 20 May it gained 3.6% in dollars but 1.3% in rupees.
- At 22 October’s rate, the US$250,000 yearly limit under the Liberalised Remittance Scheme (LRS) is ₹2.37 crore, and the ₹10 lakh TCS-free amount buys US$10,560 (US$11,391 a year earlier).
Dollar rate today: RBI reference rate and 2026 record
| Date | ₹ per US$ | Dollar’s change to 22 October 2026 |
|---|---|---|
| 22 October 2026 | 94.6986 | Used in this article |
| 6 October 2026 | 96.4348 | −1.8% |
| 20 May 2026 (2026 high) | 96.8441 | −2.2% |
| 20 October 2025 (1 year) | 87.7861 | +7.9% |
| 22 October 2021 (5 years) | 74.7836 | +26.6% |
| 21 October 2016 (10 years) | 66.8943 | +41.6% |
RBI’s reference-rate archive; Financial Benchmarks India for 2021. Where no rate was published, the previous working day is used.
In trading, the record low was 96.96 per dollar on 20 May 2026, Reuters reported (PTI: 96.95).
Why is the rupee falling in 2026?
Reuters and the RBI point to three pressures:
- Oil. Front-month Brent futures closed at US$113.17 on 22 October, the highest close since 4 May (Yahoo Finance). Dearer oil means importers need more dollars.
- Foreign selling. Foreign portfolio investors sold a net ₹3,08,358 crore of Indian shares in 2026 to 22 October (NSDL). Leaving means selling rupees for dollars.
- US rates. The Federal Reserve raised its target range to 3.75%–4.00% on 16 September, and the 10-year Treasury yield reached 5.31% on 5 October, its highest since May 2002, before easing to 4.96% on 22 October (US Treasury data). Higher yields pull money into dollars.
What the RBI has done
- Commitment: “orderly adjustments to the exchange rate that are in sync with the underlying macroeconomic fundamentals and curbing excessive volatility” (Governor’s statement, 7 October 2026).
- Rate rise: repo rate up 0.25 point to 5.50% on 7 October.
- Reserves: they fell from US$785.7 billion on 4 September (RBI) to US$734.6 billion on 2 October, a drawdown Reuters linked to dollar sales and currency swaps, and to US$726.0 billion on 9 October.
What it means for your US investments
Your rupee return combines the dollar return with the change in the exchange rate (currency risk). For SPY, with dividends reinvested:
| Period to 22 October 2026 | SPY in US$ | ₹ per US$ | SPY in ₹ |
|---|---|---|---|
| 1 year (from 20 October 2025) | +15.0% | +7.9% | +24.1% |
| 5 years (from 22 October 2021) | +80.3% | +26.6% | +128.3% |
| 10 years (from 21 October 2016) | +318.1% | +41.6% | +491.8% |
| From the rupee’s 2026 low (20 May) | +3.6% | −2.2% | +1.3% |
Yahoo Finance adjusted closes, converted at each date’s reference rate; before Indian tax, brokerage and conversion costs. For illustration only; past returns do not indicate future returns.
LRS and TCS. The LRS lets a resident individual send up to US$250,000 (₹2.37 crore at 22 October’s rate) a financial year abroad, including to GIFT City platforms. Tax collected at source (TCS) is nil on the first ₹10 lakh of investment remittances in a financial year (US$10,560 at that rate); banks collect 20% on the amount above that, credited against your tax.
Tax: currency gains may be taxable. Capital gains are worked out in rupees. Rule 206 of the Income-tax Rules, 2026 converts foreign-currency income at SBI’s telegraphic transfer (TT) buying rate (rule 207) on the last day of the month before the sale. One method converts the cost at the purchase-date rate and the sale value at that Rule 206 rate, so the rupee’s fall becomes part of your taxable gain; another converts only the dollar gain, at one rate. The point is unsettled, so ask a chartered accountant. Example: US$10,000 of shares bought on 20 October 2025 (SBI TT buying ₹87.50) and sold in October 2026 for the same US$10,000 (₹95.42 on 30 September): a taxable gain of ₹79,200 under the first method, nil under the second.
No hedging with LRS money. Overseas portfolio investment “shall not be made in... any derivatives unless otherwise permitted by Reserve Bank” (RBI’s Overseas Investment Directions, 2022), and LRS money cannot meet margin calls on overseas exchanges (RBI LRS FAQ).
Rupee currency derivatives on Indian exchanges sit outside the LRS. Since 10 October 2026, a user’s positions above US$5 million across all exchanges need proof of an underlying exposure, down from US$100 million (RBI). They are leveraged and not covered here.
Conversion costs. SBI’s card TT selling rate for ₹10–20 lakh transfers on 21 October 2026 was ₹95.05, 0.35% above the reference rate of ₹94.7145 (SBI card rates), a markup of about ₹176 on ₹50,000. GST on the conversion (about ₹90 under the CGST rule 32(2)(b) slab) and any remittance fee come on top.
Sources
- Reserve Bank of India: Reference Rate Archive, US dollar (FBIL rates; read 23 October 2026) — https://www.rbi.org.in/Scripts/ReferenceRateArchive.aspx
- Financial Benchmarks India: USD/INR reference rates, 18–26 October 2021 — https://www.fbil.org.in/
- Reserve Bank of India: Governor’s Statement (7 October 2026) — https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=63744
- Reserve Bank of India: Risk Management and Inter-Bank Dealings, A.P. (DIR Series) Circular No. 25 (10 October 2026) — https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13737&Mode=0
- Reserve Bank of India: Weekly Statistical Supplement extract (16 October 2026; reserves to 9 October) — https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=63819
- Income Tax Department: Rule 206, Income-tax Rules, 2026 — https://www.incometaxindia.gov.in/w/rule-206-1
- NSDL: FPI net investment, calendar year 2026 (up to 22 October 2026) — https://www.fpi.nsdl.co.in/web/Reports/Yearwise.aspx?RptType=6
- US Department of the Treasury: Daily Treasury Par Yield Curve Rates, 2026 — https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=2026
- The Economic Times (Reuters): Rupee nears record low despite RBI hike, governor says markets can be irrational (7 October 2026) — https://m.economictimes.com/markets/forex/forex-news/rupee-nears-record-low-despite-rbi-hike-governor-says-markets-can-be-irrational/articleshow/134763067.cms
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