Indian Rupee Gains 1.6% Against US Dollar Following RBI Measures to Curtail Net Open Positions

Indian Rupee Bounces Back Against US Dollar

The Indian Rupee rebounded sharply on Thursday, April 2, driven by the Reserve Bank of India's (RBI) decision to curb banks' net open positions in the onshore forward delivery market. The rupee opened at 94.62 against the US dollar in the interbank forex market and surged to 93.19 in early trade, marking a sharp gain of 151 paise, or 1.6%, compared to its previous close.

This rebound comes after the rupee had crossed the 95 mark on Monday, before ending at 94.70 against the dollar. On Friday, it had hit a record low of 94.84, which led to intervention by the RBI. The domestic currency remained under pressure due to persistent foreign fund outflows, a stronger US dollar, and rising crude oil prices amid an uncertain geopolitical environment.

In a circular issued on March 27, 2026, the RBI limited banks' net open positions in the rupee to $100 million, with compliance required by April 10. The RBI's move is aimed at stabilizing the rupee and preventing further depreciation.

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The dollar index, which measures the US dollar's strength against a basket of six currencies, was up 0.32% at 99.77. The RBI's intervention has provided some relief to the rupee, but the currency remains under pressure due to persistent foreign fund outflows and a stronger US dollar.