Rupee Sees Significant Surge Against US Dollar Amid RBI Intervention
Rupee's Remarkable Rise
Today, the Indian rupee experienced its most substantial increase against the US dollar in over a decade. The currency strengthened by 156 paise, closing at 93.14 per dollar (provisional). This surge follows the Reserve Bank of India's (RBI) intervention, which set a net open position limit of $10 million for banks through a circular issued on March 27, 2026, mandating compliance by April 10. As a result, banks are expected to continue selling dollars until the deadline, contributing to the rupee's impressive rise. Notably, the rupee had been facing significant depreciation due to the ongoing conflict in Iran.
Previously, the rupee had fallen beyond the 95 mark. On Monday, it crossed the 95 threshold, closing at a historic low of 94.84 per dollar on Friday. However, several measures taken by the RBI have provided support to the currency. Additionally, the central bank has prohibited banks from offering non-deliverable derivative contracts in the onshore forward market and clarified that canceled foreign exchange derivative contracts cannot be rebooked. These actions aim to alleviate speculative pressure on the rupee. Forex analysts noted that these regulatory measures compelled banks to sell dollars to reduce their open positions, thereby strengthening the rupee. The forex market was closed on Tuesday due to Mahavir Jayanti, and trading was also halted on Wednesday due to the annual financial year-end for banks.
Dollar Index Shows Strength
The dollar index, which measures the strength of the dollar against six major currencies, rose by 0.60 percent to 100.05. Meanwhile, due to the shifting geopolitical landscape, international oil benchmark Brent crude surged by 6.84 percent, nearing $108 per barrel. The geopolitical tensions stemming from the Iran conflict have led to a decline of over 4 percent in the rupee's value since February 28, while it has weakened by approximately 10 percent in the fiscal year 2025-26.
Domestic Stock Market Performance
In the domestic stock market, there was a notable uptick. After a highly volatile session, the BSE Sensex rose by 185.23 points, closing at 73,319.55, while the NSE Nifty increased by 33.70 points to end at 22,713.10. According to stock market data, foreign institutional investors (FIIs) recorded a net selling of shares worth ₹8,331.15 crore on Wednesday.