Rupee Jumps 130 Paise To 93.53 Against Dollar After RBI Tightens Forex Rules

The Indian rupee appreciated sharply by 130 paise to open at 93.53 against the U.S. dollar on April 2, following fresh regulatory measures by the Reserve Bank of India (RBI) aimed at reducing volatility in the currency market.

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The domestic currency had closed at 94.83 on March 30, marking a recent low, before rebounding in the latest session. Currency markets remained shut on March 31 and April 1 due to holidays, according to market data.

RBI Measures To Curb Volatility

The RBI on April 1 announced multiple steps to tighten oversight in the foreign exchange market. It barred banks from offering rupee non-deliverable forward (NDF) contracts to both resident and non-resident clients. The central bank also restricted the rebooking of cancelled foreign exchange derivative contracts, according to RBI guidelines.

Additionally, the RBI capped banks’ Net Open Position (NOP) at $100 million, limiting their ability to hold large proprietary positions in foreign currency. These steps are aimed at reducing speculative activity and aligning offshore and onshore currency markets, as per RBI.

Rupee Movement And Recent Levels

After the policy move, the Indian rupee continued its gains to touch 93.15 against the U.S. dollar in early trade. The rupee has appreciated by 166 paise from its previous close. The Indian rupee has gained ₹ 2.05 from its lifetime low of 95.21 against the U.S. dollar.

The rupee had lost significant ground in FY26 due to various factors such as increases in crude oil prices and continuous outflows of foreign capitals. The prices of Brent crude oil have surged to above $106 per barrel in recent sessions amid geopolitical tensions.

Oil Prices And Dollar Index

On April 2, Brent crude futures rose to around $106.04 per barrel, while U.S. West Texas Intermediate (WTI) crude traded near $104.29 per barrel, according to Reuters data.

The U.S. dollar index, which measures the greenback against a basket of six currencies, moved up to 99.85 after declining to 99.50 in the previous session, reflecting global demand for safe-haven assets amid geopolitical developments.

Market Context

The RBI’s latest measures are part of a broader effort to stabilize the rupee after it briefly crossed the 95 per dollar mark on March 30. The central bank has taken steps to limit speculative positions and reduce volatility in the currency market.

The rupee’s movement in the coming sessions will continue to reflect the impact of these regulatory changes along with global crude oil prices and foreign exchange flows.