Rupee Posts Biggest Single-Day Gain in Nearly 13 Years, Closes at 93.10
NEW DELHI — The Indian rupee سجل its sharpest single-day gain in nearly 13 years on Thursday, closing at 93.10 against the U.S. dollar as authorities intensified measures to curb currency speculation.
The currency surged as much as 1.7 percent to 93.25 במהלך the trading session, marking its strongest rally since September 2013, as markets reopened after a three-day holiday break.
Analysts said the move was supported by improved global risk sentiment following remarks by President Donald Trump that hinted at negotiations rather than escalation in ongoing geopolitical tensions, triggering a relief rally. However, they cautioned that uncertainty remains elevated, keeping volatility high in currency markets.
The rally also followed a series of steps by the Reserve Bank of India aimed at stabilizing the currency. The central bank recently barred banks from offering rupee non-deliverable forwards to both resident and non-resident clients and restricted companies from rebooking canceled forward contracts.
Earlier measures included capping banks’ net open rupee positions at $100 million and prohibiting foreign exchange derivative transactions with related parties.
These actions are intended to reduce speculative activity and support the rupee amid global market uncertainty.
Analysts also pointed to India’s strong foreign exchange reserves—exceeding $700 billion—as a key buffer against volatility, giving the central bank flexibility to intervene if necessary.
The rupee’s sharp rise came despite weak global cues. Asian markets traded lower, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi each falling by as much as 3 percent amid rising geopolitical tensions.
Meanwhile, oil prices climbed significantly, adding to market uncertainty. Brent crude rose 5.24 percent to $106.47 per barrel, while U.S. West Texas Intermediate futures gained 4.5 percent to $104.64.
Currency markets had been closed earlier this week due to holidays, including Mahavir Jayanti and the start of the new financial year, and are set to remain shut again on Friday for Good Friday. (Source: IANS)
