Rupee Reverses Decline, Reaches 96.37 Against US Dollar.

Rupee Rebounds 49 Paise to 96.37 Against US Dollar

The Indian rupee showed a significant rebound on Thursday, settling at 96.37 against the US dollar after crude oil prices retreated from elevated levels amid signs of easing geopolitical friction, alongside potential central bank intervention. This comes after the rupee had hit an all-time closing low earlier in the week.

Forex traders attribute the rupee's gain to recent geopolitical developments, but investors remain cautious due to ongoing geopolitical risks and oil price sensitivity in the background. The one-year forward market rate for the rupee touched the crucial 100/USD mark on Wednesday, indicating that currency markets are pricing in a weakening bias for the USD/INR pair over the next 12 months.

At the interbank foreign exchange market, the rupee opened at 96.25 against the dollar, then touched an early high of 96.05 and a low of 96.60 in intraday trade. At the end of Thursday's trading session, the rupee was quoted at 96.37, up 49 paise from its previous closing.

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The rupee had hit a record low of 96.95 on Wednesday and later closed at 96.86, which was also a new closing low. Analysts believe that the recovery follows a retracement in crude oil prices amid tentative signs of easing geopolitical friction, alongside active central bank intervention.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.30, up 0.22 per cent. Brent crude, the global oil benchmark, was trading down 0.75 per cent at USD 104.23 per barrel in futures trade.

Comparison of Rupee's Performance

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The rupee has been in the midst of a rapid and dramatic depreciation streak, falling by over 6 per cent in CY26 against the dollar and touching successive record lows. A report authored by Radhika Rao, Senior Economist and Philip Wee, Senior FX Strategist at DBS Bank, has lifted their USD/INR forecasts into a 95-100 range for the rest of 2026.

On the domestic equity market front, Sensex declined 135.03 points to settle at 75,183.36, while the Nifty settled on a flat note at 23,654.70. Foreign Institutional Investors offloaded equities worth Rs 1,597.35 crore on a net basis on Wednesday, according to exchange data.