Rupee Gains 77 Paise Against US Dollar As RBI Measures Boost Recovery

The Indian rupee gained 77 paise against the US dollar in early trade on Tuesday, extending its rally for a second consecutive session after Reserve Bank of India (RBI) measures aimed at reducing immediate dollar demand and curbing excessive positions in the foreign exchange market.

The domestic currency opened at 95.17 against the dollar before strengthening to 95.05, gaining 77 paise from its previous close of 95.78.

On Monday, the rupee rose 93 paise to close at 95.78, marking its biggest single-day gain in more than six months.

The RBI’s measures include a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions. These steps aim to reduce spot-market dollar demand and discourage speculative positions against the rupee.

Earlier this month, the central bank tightened rules governing foreign exchange derivatives trading to curb speculative bets against the domestic currency. It asked banks to maintain a 20 per cent reserve against dollar purchases exceeding $2 million.

In measures announced on Saturday, the RBI directed authorised dealers not to allow users to rebook cancelled foreign exchange derivative contracts involving the Indian rupee, whether deliverable or non-deliverable.

Experts expect the rupee to trade between 95.60 and 97.50 against the dollar by end-2026, with most forecasts around 96–97.

The US dollar index fell 0.15 per cent to 102.43 but remained near its highest level since April 2025, as investors awaited US inflation data for clues on Federal Reserve policy.

Brent crude fell over 1 per cent to $105.47 per barrel.

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