Rupee saw a strong rebound in early trading on Thursday, climbing 151 paise from its record low to reach 93.19 against the US dollar, following a regulatory step by the Reserve Bank aimed to restrict banks’ net open position in the onshore forward delivery market.Rupee began the day in green at 94.62 against the greenback in the interbank foreign exchange market before gaining ground sharply. The move marked a 1.6 % rise compared to its previous closing level.The recovery comes after a turbulent stretch for rupee, which had slipped past the 95 mark earlier in the week and ended Monday at 94.70. In the previous week, it had hit an all-time low of 94.84 against the dollar, triggering intervention from the central bank.As part of its latest measures, the Reserve Bank, through a circular issued on March 27, 2026, placed a cap of $100 million on banks’ net open positions in rupee, with compliance required by April 10.Even as the currency recovered, underlying pressures remained. Forex analysts pointed to continued foreign fund outflows, a firming US dollar and elevated crude oil prices, all set against a volatile geopolitical environment.The dollar index was up 0.32% at 99.77, indicating strength in the greenback against major global currencies. At the same time, Brent crude futures rose 4.84% to $106.06 per barrel.Equity markets mirrored the cautious mood. In early trade, the Sensex fell 1,312.91 points, or 1.80%, to 71,821.41, while the Nifty declined 410.45 points, or 1.81%, to 22,383.40.Data from exchanges showed foreign institutional investors remained net sellers, offloading equities worth Rs 8,331.15 crore on Wednesday.“The high crude price, the widening trade deficit, the fear of declining remittances and sustained FPI selling are acting cumulatively to put high pressure on the rupee,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.Rupee’s recent trend reflects broader pressures. It has weakened by more than 4% since the onset of the Middle East war on February 28, 2026, and recorded a decline of nearly 10 per cent over the fiscal year ending March 2026.Meanwhile, official data released on Wednesday showed goods and services tax collections rose around 9% in March, crossing the Rs 2 lakh crore mark. The figure represents the third-highest monthly collection in the 2025-26 fiscal year, supported by revenues from both imports and domestic transactions.
