At the interbank foreign exchange market, the rupee opened at 94.62 and surged to 93.19 in early deals, marking a rise of 151 paise, or about 1.6%, from its previous close of 94.70.
It later traded around 93.02 per dollar.
The rebound follows recent pressure on the currency, which had breached the 95 mark earlier this week and hit a record low of 94.84 on Friday (March 27).
The recovery comes after the central bank capped banks’ net open positions in the onshore forward delivery market at $100 million, with compliance mandated by April 10.
The move aims to curb excessive speculation and stabilise the rupee, prompting traders to unwind positions and support the currency.
Despite the sharp gains, external pressures persist. The dollar index rose 0.32% to 99.77, while Brent crude prices climbed nearly 5% to around $106 per barrel, adding to concerns over India’s trade balance.
Domestic equities also reflected broader risk aversion.
Foreign investors remained net sellers, offloading equities worth ₹8,331 crore.
Analysts say elevated oil prices, sustained foreign outflows, and concerns over remittances continue to weigh on the rupee’s outlook. The currency has weakened more than 4% since late February amid escalating geopolitical tensions and declined nearly 10% over the past financial year.
The latest rally, therefore, reflects policy-driven support and position unwinding, even as underlying macroeconomic and global risks remain in play.
-With agencies inputs
First Published: Apr 2, 2026 9:09 AM IST
