Rupee rebounds - Indian currency surges to 93.19 despite war pressure
April 02, 2026
The rupee recovered 1.6% from record lows to 93.19 against the US dollar after RBI capped banks’ net open positions, though pressure persists from high crude prices and FPI outflows.
The rupee recovered 1.6% from record lows to 93.19 against the US dollar after RBI capped banks’ net open positions, though pressure persists from high crude prices and FPI outflows.
The rupee recovered 151 paise from its record low level to trade at 93.19 against the US dollar in early deals on Thursday, backed by the Reserve Bank’s move to restrict banks’ net open position in the onshore forward delivery market.
The domestic unit, however, faced pressure due to unabated withdrawal of foreign capital, strengthening dollar and rising crude oil prices amid volatile geopolitical situation, forex analysts said.
At the interbank foreign exchange, the rupee opened at 94.62 and rose sharply to 93.19 against the US dollar in early deals, registering a gain of 151 paise or 1.6 per cent from its previous close.
The local currency breached the 95 level on Monday before closing at 94.70 versus the greenback. It had settled at a historic low of 94.84 against dollar on Friday, prompting the RBI to intervene.
Through its circular dated March 27, 2026, RBI capped the net open position on the Indian rupee for banks at USD 100 million, mandating compliance by April 10.
Dollar firms, crude surges; equities tumble in early trade
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.32 per cent higher at 99.77.
Brent crude, the global oil benchmark, was trading at USD 106.06 per barrel, up 4.84 per cent, in futures trade.
On the domestic equity market front, Sensex tumbled 1,312.91 points or 1.80 per cent to 71,821.41 in early trade, while the Nifty slumped 410.45 points or 1.81 per cent to 22,383.40.
Foreign institutional investors sold equities worth Rs 8,331.15 crore on a net basis on Wednesday, according to exchange data.
GST mop-up crosses Rs 2 lakh crore, rupee stays under strain
“The high crude price, the widening trade deficit, the fear of declining remittances and sustained FPI selling are acting cumulatively to put high pressure on the rupee,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
The rupee recovered 151 paise from its record low level to trade at 93.19 against the US dollar in early deals on Thursday, backed by the Reserve Bank’s move to restrict banks’ net open position in the onshore forward delivery market.
The domestic unit, however, faced pressure due to unabated withdrawal of foreign capital, strengthening dollar and rising crude oil prices amid volatile geopolitical situation, forex analysts said.
At the interbank foreign exchange, the rupee opened at 94.62 and rose sharply to 93.19 against the US dollar in early deals, registering a gain of 151 paise or 1.6 per cent from its previous close.
The local currency breached the 95 level on Monday before closing at 94.70 versus the greenback. It had settled at a historic low of 94.84 against dollar on Friday, prompting the RBI to intervene.
Through its circular dated March 27, 2026, RBI capped the net open position on the Indian rupee for banks at USD 100 million, mandating compliance by April 10.
Dollar firms, crude surges; equities tumble in early trade
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.32 per cent higher at 99.77.
Brent crude, the global oil benchmark, was trading at USD 106.06 per barrel, up 4.84 per cent, in futures trade.
On the domestic equity market front, Sensex tumbled 1,312.91 points or 1.80 per cent to 71,821.41 in early trade, while the Nifty slumped 410.45 points or 1.81 per cent to 22,383.40.
Foreign institutional investors sold equities worth Rs 8,331.15 crore on a net basis on Wednesday, according to exchange data.
GST mop-up crosses Rs 2 lakh crore, rupee stays under strain
“The high crude price, the widening trade deficit, the fear of declining remittances and sustained FPI selling are acting cumulatively to put high pressure on the rupee,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.