Indian Rupee Jumps 2% To ₹93.10/$ : Best Single-Day Gain Since 2013 After RBI Steps

The Indian rupee staged a sharp recovery this week, rising about 2% from its record low of 95.22 per dollar. The currency closed at around ₹93.10 per dollar, marking its best single-day gain since September 2013.

The rupee opened at ₹93.53 and strengthened further during the session before settling slightly lower by the close.

RBI Measures Boost Sentiment

The rally came after action from the Reserve Bank of India to reduce volatility in the currency market.

The central bank:

• Put a cap on banks offering rupee non-deliverable forward (NDF) contracts
• Restricted rebooking of cancelled forward contracts
• Limited banks’ net open positions to $100 million, with a deadline to comply by April 10

These steps aim to reduce speculation and bring better control to currency pricing between offshore and domestic markets.

Why The Rupee Fell Earlier?

Despite the recovery, the rupee had recently fallen to record lows after global uncertainty pushed the US dollar higher.

Oil Prices Continue To Pressure The Rupee

Rising crude oil prices remain a major challenge. Brent crude has climbed near $106 per barrel due to geopolitical tensions in the Middle East.

Since India imports most of its oil, higher crude prices increase demand for dollars and put pressure on the rupee.

Foreign Investors Still Pulling Out Money

Foreign portfolio investors (FPIs) sold Indian equities worth about ₹8,072 crore recently.
FPI outflows typically increase demand for dollars and weaken the rupee, which could limit further gains.

Conclusion

The rupee’s sharp rebound was driven mainly by RBI’s strong steps to control volatility. However, high oil prices and continued foreign investor outflows remain key risks that could keep the currency under pressure in the near term.

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