The rupee saw a sharp rebound on Thursday, rising 156 paise or 1.6 per cent to settle at 93.14 (provisionally) against the US dollar, recording one of its biggest single-day gains in many years following regulatory measures taken by the Reserve Bank of India (RBI), according to PTI.The rise followed a series of steps by the central bank to restrict banks from internal futures markets, prompting lenders to unbundle the dollar.In the interbank foreign exchange market, the local unit opened at 94.62 and rose sharply by 188 paise during the session to reach an intraday high of 92.82. It finally settled at 93.14, up 156 paise from the previous close.The rupee had breached the 95 mark earlier this week, and closed at 94.70 on Monday after hitting a record low of 94.84 on Friday, triggering the Reserve Bank of India’s intervention, news agency PTI reported.Forex markets remained closed on Tuesday due to Shri Mahavir Jayanti and on Wednesday due to closure of annual accounts of banks.Through its circular issued on March 27, the RBI set banks’ net open rupee positions at USD 100 million, with a commitment to comply by April 10.On Wednesday, it announced additional measures, stating that authorized dealers will not be allowed to offer non-deliverable derivative contracts involving the rupee to resident or non-resident users.
The Central Bank also prohibited users from re-booking any foreign exchange derivatives contract, whether deliverable or non-deliverable, once it is canceled after the issuance of these instructions.Despite Thursday’s rise, the rupee remains under pressure from foreign capital outflows, a stronger dollar, and rising crude oil prices amid ongoing geopolitical tensions, analysts said.Since the outbreak of conflict in West Asia on February 28, 2026, the rupee has depreciated by more than 4%.
For the entire fiscal year 2026, the currency is down approximately 10 percent against the US dollar.Anuj Chaudhary, research analyst at Mirae Asset ShareKhan, said the rise was driven by regulatory tightening.“This led to banks selling dollars in compliance with regulatory requirements,” he said.He added that the rupee may continue to trade with a positive bias as banks unwind their positions before the April 10 deadline.“However, global risk aversion sentiment and rising crude oil prices may continue to pressure the rupee at higher levels,” he said, adding: “The US dollar to Indian rupee spot rate is expected to trade in a range of Rs 92.20 to Rs 93.20.”Meanwhile, the dollar index rose 0.60 percent to 100.05, while Brent crude rose 6.84 percent to $108.08 a barrel.In domestic stocks, the Sensex ended 185.23 points higher at 73,319.55, while the Nifty rose 33.70 points to close at 22,713.10.Foreign institutional investors sold shares worth Rs 8,331.15 crore on Wednesday, stock exchange data showed.Separately, government data indicated that GST collections increased by nearly 9 per cent in March, crossing Rs 2 lakh crore, marking the third highest monthly clearance in FY26.
