Rupee Gains 32 Paise Against Dollar On RBI Measures, Lower Crude Prices

The Indian rupee strengthened by 32 paise to 94.85 against the US dollar in early trade on Thursday, extending its recent gains amid Reserve Bank of India (RBI) measures to manage the foreign exchange market, a weaker dollar and falling crude oil prices.

The domestic currency opened at 94.91 against the US dollar after settling 19 paise higher at 95.16 in the previous session.

The rupee has gained support from the RBI’s foreign exchange interventions, liquidity-tightening measures and traders unwinding long-dollar positions.

Earlier this month, the central bank tightened rules for foreign exchange derivatives to curb speculative bets against the rupee. It also directed banks to maintain a 20 per cent reserve against dollar purchases exceeding $2 million.

The RBI further barred authorised dealers from allowing customers to rebook cancelled foreign exchange derivative contracts involving the rupee, covering both deliverable and non-deliverable contracts.

Currency analysts said the rupee had moved below its recent trading range of 95.00–95.50 against the dollar, with 94.80 emerging as a key level to watch.

A sustained move below this level could support further gains, helped by lower direct dollar demand from oil marketing companies and improving market sentiment.

The dollar index fell to 101.99, while Brent crude prices dropped nearly 2 per cent to $104.30 a barrel, easing import costs.

Sensex gained over 1,000 points to 73,836.71, while Nifty rose 1.36 per cent to 22,929.55.

Analysts expect the rupee to trade between 95.60 and 97.50 per dollar by the end of 2026.

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