Indian rupee gains 32 paise to 94.85 against US dollar in early trade

The Indian rupee strengthened 32 paise to 94.85 against the US dollar in early trade, supported by RBI forex measures, a weaker dollar and lower crude prices. Rising domestic equities and improved global sentiment also supported the currency

New Delhi: The Indian rupee strengthened by 32 paise to 94.85 against the US dollar in early trade on Thursday, extending its recent gains amid continued support from the Reserve Bank of India’s forex management measures and a softer greenback.

The domestic currency opened at 94.91 against the US dollar.

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The rupee has benefited from the RBI’s structural interventions in the foreign exchange market, liquidity-tightening steps and the unwinding of long-dollar positions by traders.

Earlier in October, the Reserve Bank tightened rules governing forex derivatives trades to curtail speculative bets against the rupee and asked banks to create a 20 per cent reserve for dollar purchases exceeding $2 million.

In another set of measures announced earlier on the derivatives front, the RBI said authorised dealers should not permit users to rebook any foreign exchange derivative contract involving the Indian rupee, whether deliverable or non-deliverable, once it has been cancelled.

The rupee had settled 19 paise higher at 95.16 against the dollar in the previous session.

According to experts, the local currency has moved decisively out of the 95.50–95.00 trading band, with the next key level seen around 94.80. A sustained move below this level could create room for further appreciation, aided by lower direct dollar demand from oil marketing companies and improved market sentiment.

Support for the rupee also came from favourable global cues.

Currency analysts expect the Indian currency to trade in the 95.60–97.50-per-dollar range by the end of 2026, with most projections clustering around the 96–97-per-dollar mark.

The dollar index, which measures the greenback against a basket of major currencies, declined to 101.99.

Additionally, the international oil benchmark Brent crude declined nearly 2 per cent to $104.30 per barrel.

Domestic equities also traded higher, with the benchmark Sensex and Nifty rising more than 1 per cent each. The Sensex was at 73,836.71, up more than 1,000 points, or 1.45 per cent, while the Nifty was trading at 22,929.55, up 300 points, or 1.36 per cent.