Rupee Opens Stronger at 93 Against U.S. Dollar Amid RBI Measures
NEW DELHI — The Indian rupee opened 10 paise higher at 93 against the U.S. dollar on Monday, supported by continued unwinding of speculative positions in offshore markets and recent measures by the Reserve Bank of India to curb volatility.
The currency was trading at 93 per dollar in early trade, compared to its previous close of 93.10. Domestic currency and fixed income markets were closed on April 3 for Good Friday.
The rupee has strengthened about 2 percent over the past week following the central bank’s tighter regulatory actions targeting excessive speculation in the offshore non-deliverable forwards market. The measures, described as among the strictest in more than a decade, have led banks to unwind arbitrage positions, impacting the multi-billion-dollar offshore segment.
Market participants are also monitoring Brent crude prices and foreign institutional investor flows, both of which continue to influence sentiment.
Attention is now focused on the Reserve Bank of India’s Monetary Policy Committee meeting, which began Monday and is scheduled to conclude on April 8. Economists widely expect interest rates to remain unchanged.
Analysts said the dollar-rupee pair is currently trading in the 92.80 to 93 range after retreating from recent highs near 94.80, aided by central bank intervention.
A move above 93 could push the pair toward the 93.50 to 93.80 range, while immediate support is seen between 92.60 and 92.40. The near-term outlook remains slightly positive, though direction will depend on global dollar strength and overall risk sentiment.
Globally, investors are tracking crude oil prices amid heightened geopolitical tensions after U.S. President Donald Trump set a deadline for Iran to reopen the Strait of Hormuz, raising concerns about potential supply disruptions. The route accounts for more than 20 percent of global crude flows and has remained largely closed since late February following escalating conflict.
Brent crude was trading near $110 per barrel, up nearly 1 percent from the previous session.
Meanwhile, domestic equity markets were under pressure in early trade, with the Sensex down 529 points, or 0.72 percent, at 72,790, and the Nifty falling 150 points, or 0.66 percent, to 22,561. (Source: IANS)
