- The Indian rupee rose 1.7% to 93.25 per dollar, its biggest gain since 2013
- Authorities extended curbs to offshore derivatives to curb currency speculation
- The move followed recent tightening of limits on banks' local currency positions
The Indian rupee extended gains in the afternoon session on Thursday, April 2, after a nearly 220 paise surge from its recent low of 95.12 per US dollar after the Reserve Bank of India's offshore forex interventions. Earlier today, the domestic unit logged its highest surged in over 12 years after the central banking regulator stepped up its push against speculation, extending curbs to offshore derivatives just days after tightening limits on the local positions by banks.
In early trade, the rupee surged 1.7% to 93.25 per dollar, the most since September 2013, after currency trading resumed after a two-day break. The gains came despite a broad weakness in most regional currencies as US President Donald Trump signaled an escalation in the Iran war. Earlier, the rupee recovered from its record low level to trade at 93.19 against the US dollar, backed by RBI's forex move.
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The domestic unit, however, faced pressure due to unabated withdrawal of foreign capital, strengthening dollar and rising crude oil prices amid volatile geopolitical situation, forex analysts said. At the interbank foreign exchange, the rupee opened at 94.62 and rose sharply to 93.19 against the US dollar in early deals, registering a gain of 151 paise or 1.6% from its previous close.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.32 per cent higher at 99.77. The local currency breached the 95 level on Monday before closing at 94.70 versus the greenback. It had settled at a historic low of 94.84 against dollar on Friday, prompting the RBI to intervene. Through its circular dated March 27, 2026, RBI capped the net open position on the Indian rupee for banks at USD 100 million, mandating compliance by April 10.
Brent crude, the global oil benchmark, was trading at $106.06 per barrel, up 4.84%, in futures trade. On the domestic equity market front, Sensex tumbled 1,312.91 points or 1.80% to 71,821.41 in early trade, while the Nifty slumped 410.45 points or 1.81% to 22,383.40. Foreign institutional investors sold equities worth Rs 8,331.15 crore on a net basis on Wednesday, according to exchange data.
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Since the beginning of the US-Iran war on Feb. 28, 2026, the rupee has depreciated over 4%. During the fiscal year ended March 2026, the currency has declined nearly 10% against the US dollar. The currency market were closed for three days this week, on account of Mahavir Jayanti on March 31, new fiscal year starting on April 1, and Good Friday on April 3.
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