Rupee Opens 6 Paise Higher at 93 per Dollar Amid Anticipation of RBI Policy Decision

Indian Rupee Gains 6 Paise as Banks Unwind Arbitrage Positions

The Indian rupee rose 6 paise on April 7, as banks continued to unwind their arbitrage positions in the offshore non-deliverable forwards (NDF) market. The local currency was trading at Rs 93.00 per dollar, as compared to Rs 93.06 per dollar in the previous session. This move comes as banks have until April 10 to comply with the RBI's directive on banks' net open positions on the Indian rupee (NOP-INR).

The rupee's movement was relatively calmer in the previous session, trading in a 30 paise range, after facing severe volatility last week. Traders will now look forward to the first monetary policy committee meeting of FY27 on April 8, where it is expected that the central bank will hold rates, while announcements on liquidity management, inflation, and growth projections will be on the cards as well.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Globally, traders are cautious about elevated Brent crude prices, as the war in West Asia continues to intensify. US President Donald Trump threatened that Iran could be 'taken out' if they miss the deadline to open the Strait of Hormuz - a key energy route for multiple countries - on Tuesday. Brent crude prices have jumped nearly 50 percent ever since the war broke out.