The Indian rupee strengthened by 14 paise to close at 93.04 (provisional) against the US dollar on Monday, supported by recent measures introduced by the Reserve Bank of India to reduce speculative activity and limit volatility in the currency.
Forex traders noted that while the central bank’s steps are positive for the rupee, persistent foreign capital outflows, a firm US dollar, and rising crude oil prices amid geopolitical uncertainty continue to exert pressure on the domestic currency.
The RBI has tightened regulations to curb speculative positions, including capping banks’ net open positions at USD 100 million. In the interbank foreign exchange market, the rupee opened at 93.13 against the greenback and gained during the session to touch an intraday high of 92.79. By the close, it settled at 93.04 (provisional), marking a 14 paise gain from its previous close.
On Thursday, the rupee had recorded one of its sharpest single-day gains in years, rising 152 paise to settle at 93.18 against the US dollar after the RBI announced a series of measures restricting banks’ activities in onshore forward markets. Both equity and forex markets remained shut on Friday on account of Good Friday.
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Global tensions continue to weigh on the rupee. US President Donald Trump has heightened tensions with Iran by setting a Tuesday deadline to reopen the Strait of Hormuz, warning that failure to comply could lead to attacks on critical infrastructure.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, was trading 0.15 per cent lower at 99.87. Global oil benchmark Brent crude was trading at USD 107.29 per barrel in futures trade, down 1.61 per cent, as investors closely tracked developments around the Strait of Hormuz.
According to market participants, the USD/INR pair may see short-term appreciation, though the broader trend will remain influenced by global dollar liquidity, oil price movements, and evolving geopolitical factors.
In the domestic equity market, the BSE Sensex rose 787.30 points to close at 74,106.85, while the NSE Nifty 50 advanced 255.15 points to 22,968.25.
Foreign Institutional Investors (FIIs) sold equities worth Rs 9,931.13 crore on a net basis on Thursday, according to exchange data.
India’s foreign exchange reserves declined by USD 10.288 billion to USD 688.058 billion for the week ended March 27, the RBI said. In the previous week, reserves had fallen by USD 11.413 billion to USD 698.346 billion.
On the macroeconomic front, growth in India’s services sector eased to a 14-month low in March, reflecting slower expansion in new business, according to a monthly survey.
The seasonally adjusted HSBC India Services PMI Business Activity Index slipped from 58.1 in February to 57.5 in March, marking the slowest pace of growth since January 2025.
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