On Monday, the rupee gained 14 paise to close at 93.04 (provisional) against the US dollar following the Reserve Bank of India’s moves aimed at curbing speculation and reducing rupee volatility. Forex traders said that however, RBI’s measures have proved to be quite positive for the rupee. But rising crude oil prices amid continued foreign capital outflows, strengthening dollar, and unstable geopolitical situation continue to put pressure on the rupee. RBI tightened its rules to curb speculative positions and capped banks’ net open positions at $100 million. Let us also tell you what kind of figures are being seen in the rupee after the closure of the currency market.
Continuous rise in rupee
At the interbank foreign exchange market, the rupee opened at 93.13 against the US dollar and gained momentum in intraday trade, touching a high of 92.79 against the US dollar. At the end of Monday’s trading session, the rupee was at 93.04 (provisional), 14 paise higher than its previous closing price. On Thursday, the rupee recorded its biggest single-day gain in several years and closed 152 paise higher at 93.18 against the US dollar after the Reserve Bank took a series of measures to prevent banks from venturing into the onshore forward market. Equity and forex markets remained closed on Friday due to Good Friday. Global tensions are keeping pressure on the rupee. US President Donald Trump has escalated tensions with Iran, setting a deadline of Tuesday for the reopening of the Strait of Hormuz, warning that failure to comply could result in attacks on its power infrastructure.
dollar and market game
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.15 per cent lower at 99.87. Global oil benchmark Brent crude was trading 1.61 per cent lower at $107.29 a barrel in futures trade as investors focused on Trump’s deadline to reopen the Strait of Hormuz.
According to Forex traders, the rupee and dollar pair may see short-term strength, even if its broader direction is tilted towards global dollar liquidity, crude oil fluctuations and changing geopolitical situations. Talking about the domestic equity market, Sensex jumped 787.30 points to close at 74,106.85, while Nifty rose 255.15 points to 22,968.25.
foreign exchange reserves figures
According to exchange data, foreign institutional investors sold shares worth Rs 9,931.13 crore on a net basis on Thursday. Meanwhile, the Reserve Bank of India (RBI) on Friday said that during the week ending March 27, India’s foreign exchange reserves declined by $10.288 billion to $688.058 billion. In the last reporting week, total reserves had declined by $11.413 billion to $698.346 billion.
Service PMI became slow
On the domestic macroeconomic front, India’s services sector growth slowed in 14 months in March, reflecting a slowdown in new business, according to a monthly survey. The seasonally adjusted HSBC India Services PMI Business Activity Index fell to 57.5 in March from 58.1 in February, reflecting the lowest growth in new business and activity since January 2025.