Rupee Recovers Amid RBI Intervention, Market Volatility
Mumbai, March 30 – The Indian rupee rebounded sharply on Monday, gaining 128 paise against the US dollar, recovering from an all-time low of 93.57. The recovery followed a decision by the Reserve Bank of India (RBI) to cap net open positions (NOP-INR) for banks at USD 100 million.The rupee opened at 93.62 and subsequently climbed to 93.57 against the dollar, marking a significant gain from Friday’s close of 94.85. Friday’s decline saw the rupee fall by 89 paise.
According to CR Forex Advisors Managing Director Amit Pabari, the rupee’s recovery was largely driven by banks adjusting their positions in response to the RBI’s directive, leading to dollar sales in the market. “This creates a phase of relief, driven by position unwinding, not by a major shift in fundamentals, but still meaningful in the near term,” Pabari stated.
The RBI issued a circular on March 27, 2026, mandating compliance by April 10, capping banks’ NOP-INR at USD 100 million.
However, the USD/INR pair continues to face pressure from the elevated dollar index, currently trading at 100.09, and rising crude oil prices. Brent crude, the global benchmark, was trading at USD 115 per barrel, up 2.16 per cent in futures trade. Geopolitical tensions are contributing to the increase in oil prices, which is a critical concern for India as a major oil importer.
“For India, this is critical. Being a major oil importer, higher oil prices increase dollar demand, which directly puts pressure on the rupee,” Pabari added.
Meanwhile, the domestic equity market experienced volatility, with the Sensex tumbling 1,191.24 points to 72,391.98 and the Nifty falling 349.45 points to 22,470.15. Foreign institutional investors (FIIs) sold equities worth Rs 4,367.30 crore on a net basis on Friday, according to exchange data.
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