Rupee Rebounds 151 Paise from Record Low, Trades at 93.19 Against US Dollar

Rupee Rebounds 151 Paise from Record Low, Trades at 93.19 Against US Dollar​

RBI Measures Trigger Sharp Recovery in Early Trade​

Mumbai, April 2: The Indian rupee staged a strong recovery on Thursday, gaining 151 paise from its record low to trade at 93.19 against the US dollar in early deals. The rebound comes after the Reserve Bank of India introduced measures to restrict banks' net open position in the onshore forward delivery market.

At the interbank foreign exchange, the rupee opened at 94.62 and surged to 93.19, marking a gain of 1.6 percent from its previous close.

RBI Caps Banks’ Exposure to Stabilize Currency​

The central bank, through its circular dated March 27, 2026, capped the net open position on the Indian rupee for banks at USD 100 million. Banks have been directed to comply with this limit by April 10, a move aimed at curbing excessive speculation and stabilizing the domestic currency.

The rupee had been under significant pressure in recent sessions, breaching the 95 mark on Monday before settling at 94.70. It had also recorded a historic low of 94.84 on Friday, prompting intervention from the RBI.

Persistent Headwinds Continue to Weigh on Rupee​

Despite the sharp recovery, multiple external and domestic factors continue to exert pressure on the rupee. Analysts point to sustained foreign capital outflows, a strengthening US dollar, and rising crude oil prices amid ongoing geopolitical tensions.

The dollar index, which tracks the US currency against a basket of six major currencies, was trading 0.32 percent higher at 99.77.

Meanwhile, Brent crude prices climbed 4.84 percent to USD 106.06 per barrel in futures trade, adding to concerns over India’s import bill and trade deficit.

Equity Market Weakness and FII Outflows Add Pressure​

The domestic equity markets mirrored the cautious sentiment. The Sensex declined 1,312.91 points or 1.80 percent to 71,821.41 in early trade, while the Nifty dropped 410.45 points or 1.81 percent to 22,383.40.

Foreign institutional investors continued to offload Indian equities, with net sales of Rs 8,331.15 crore recorded on Wednesday, further weighing on the rupee.

Rupee Under Pressure Since West Asia Conflict​

The rupee has been on a weakening trend since the onset of the West Asia conflict on February 28, 2026, depreciating by over 4 percent during this period. For the fiscal year ended March 2026, the currency has declined nearly 10 percent against the US dollar.

GST Collections Show Economic Resilience​

In a positive signal for the domestic economy, government data released on Wednesday showed that GST collections rose about 9 percent in March, crossing Rs 2 lakh crore. This marks the third-highest monthly collection in the financial year 2025-26, driven by strong import activity and domestic transactions.