Rupee Hits 12-Year High Jump, Dollar Weakens Significantly
Indian Rupee Records Biggest Jump in 12 Years; 1 Dollar Now at New Level: The Indian Rupee witnessed a sharp rebound, strengthening by 156 paise to close at 93.14 against the US dollar, following decisive intervention by the Reserve Bank of India (RBI). The rally comes after the central bank imposed stricter norms on banks’ net open positions in foreign exchange, capping them at $100 million and setting an April 10 compliance deadline.
These regulatory measures have compelled banks to offload dollars, boosting demand for the rupee and supporting its recovery. The RBI also tightened rules on derivative trading by restricting non-deliverable contracts in the onshore forward market and disallowing the rebooking of cancelled forex contracts—steps aimed at curbing speculative pressure.
The rupee had recently hit record lows, breaching the 95 mark and closing at 94.84 per dollar, largely due to global uncertainties linked to the Iran war. Despite the rebound, the currency has depreciated over 4% since late February and nearly 10% in the 2025–26 fiscal year.
Globally, the dollar index rose 0.60% to 100.05, while Brent crude prices surged close to $108 per barrel amid geopolitical tensions.
Meanwhile, domestic equity markets remained resilient. The BSE Sensex climbed 185.23 points to 73,319.55, and the NSE Nifty gained 33.70 points to settle at 22,713.10, even as foreign institutional investors continued selling equities worth ₹8,331.15 crore.
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