Rupee Recovers 49 Paise To Close At 96.37 Against U.S. Dollar

The Indian rupee rebounded sharply on May 22, gaining 49 paise from its record closing low to settle at 96.37 against the U.S. dollar amid softer crude oil prices and possible intervention by the Reserve Bank of India (RBI).

At the interbank foreign exchange market, the domestic currency opened at 96.25 against the dollar. During the session, it touched an intraday high of 96.05 and a low of 96.60 before ending the day at 96.37.

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The recovery came a day after the rupee had fallen to an all-time low of 96.95 during intraday trade and settled at a record closing level of 96.86.

Crude Oil Eases, Supports Rupee

The rupee’s recovery followed a decline in global crude oil prices after signs of easing geopolitical tensions in West Asia reduced concerns around immediate supply disruptions.

Brent crude futures, the global oil benchmark, traded 0.75% lower at $104.23 per barrel during the session.

Dilip Parmar, Research Analyst at HDFC Securities, said the rupee gained support after crude oil prices corrected from elevated levels alongside active intervention by the central bank.

He added that the market would continue tracking geopolitical developments and the RBI’s upcoming monetary policy review for further direction in the currency market.

Dollar Index Remains Firm

Despite the rupee’s rebound, the U.S. dollar remained firm against major global currencies. The dollar index, which measures the greenback against a basket of six major currencies, was trading higher by 0.22% at 99.30.

Forex market participants also highlighted that the one-year forward premium for the rupee crossed the 100/USD mark on Wednesday, indicating expectations of continued pressure on the domestic currency over the next year.

According to a report by DBS Bank economists Radhika Rao and Philip Wee, the rupee has depreciated more than 6% against the dollar in calendar year 2026 and has continued to touch successive record lows. The report projected the USD/INR pair to remain in a 95-100 range during the rest of 2026.

Equity Markets End Lower

Domestic equity benchmarks closed marginally lower on Thursday. The BSE Sensex declined 135.03 points to settle at 75,183.36, while the NSE Nifty 50 ended nearly unchanged at 23,654.70.

Foreign Institutional Investors remained net sellers in the equity market and offloaded shares worth ₹1,597.35 crore on May 21, according to exchange data.

Market participants are now closely monitoring crude oil movements, geopolitical developments in West Asia and RBI measures aimed at stabilising the rupee amid continued volatility in global currency markets.