Rupee recovers: Rises 33 paise to 92.85 against US dollar

The rupee appreciated by 33 paise to 92.85 against the US dollar in early trade on Monday , extending its recent rebound after regulatory measures introduced by the Reserve Bank of India (RBI) to curb speculative activity in the foreign exchange market.

At the interbank foreign exchange market , the domestic currency opened at 93.13 against the greenback and strengthened further to 92.85 , gaining 33 paise from its previous close of 93.18 . The recovery in the rupee had begun on April 3 , when the currency surged 152 paise in a single session to close at 93.18 , one of the sharpest single-days , after the central bank moved to stabilise the currency market. Markets remained closed on Friday due to Good Friday , making Monday the next trading session.

Forex traders said the rebound was largely driven by the RBI’s decision to tighten rules in the forex market to curb speculative bets against the rupee . The central bank had earlier capped banks’ net open foreign exchange positions at USD 100 million , requiring lenders to reduce large currency exposures that could amplify volatility.

The RBI also restricted certain non-deliverable forward (NDF) transactions and barred the rebooking of cancelled forward contracts, steps aimed at reducing the influence of offshore trading and limiting speculative arbitrage in the rupee market. Following these directives, banks and traders unwound large dollar positions, resulting in selling of dollars and buying of rupees, which supported the domestic currency.

However, analysts cautioned that global uncertainties continue to weigh on the rupee , citing foreign capital outflows, a strong US dollar and elevated crude oil prices . Rising geopolitical tensions in the Middle East , including concerns over potential oil supply disruptions , have also added to volatility in global financial markets.

Market experts said the rupee’s near-term trajectory will depend on global risk sentiment, capital flows and the effectiveness of RBI’s measures aimed at stabilising the foreign exchange market.