Rupee Extends Winning Streak to Four Sessions, Gains ₹1.71 Against Dollar to Close at ₹95.17 as RBI Steps In

The Indian rupee strengthened for the fourth consecutive trading session on Wednesday, gaining 19 paise to close at 95.17 (provisional) against the US dollar, supported by Reserve Bank of India (RBI) measures to curb speculative trading, a weaker dollar and easing US Treasury yields.

The rupee has gained 1.71 over the past four sessions, recovering after the central bank introduced measures on October 10 to ease pressure on the domestic currency and curb excessive volatility.

At the interbank foreign exchange market, the rupee opened at 95.05 against the dollar and touched an intraday high of 94.76 before settling at 95.17. On Tuesday, it had appreciated 42 paise to close at 95.36.

The RBI introduced a special window for oil marketing companies to meet their dollar requirements outside the spot market, tightened rules governing foreign exchange derivatives trading and directed banks to maintain a 20 per cent reserve against dollar purchases exceeding $2 million.

However, the recovery faces significant risks from elevated crude oil prices, foreign investor outflows and geopolitical tensions. Brent crude futures rose 0.64 per cent to $106.37 a barrel, while the dollar index edged up 0.05 per cent to 102.23.

Adding to concerns, government data released on Wednesday showed that wholesale price inflation rose to 11.39 per cent in September, compared with 9.92 per cent in August, driven by higher prices of food, manufactured goods, fuel and power.

Finance Minister Nirmala Sitharaman said the rupee had depreciated significantly over the previous 18 months and that the RBI would continue efforts to prevent excessive volatility.

Meanwhile, domestic equities weakened, with the Sensex falling 251.89 points to 72,781.89 and the Nifty declining 99.25 points to 22,622.70. Foreign institutional investors sold equities worth ₹1,305.13 crore on a net basis on Tuesday.

Despite the four-session rebound, the rupee's sustained recovery will depend on global oil prices, foreign capital flows and the effectiveness of RBI measures.