Rupee posts biggest one-day gain in 13 years amid RBI curbs

The Indian rupee recorded its biggest single-day gain in nearly 13 years, closing at 93.10 against the US dollar after the RBI tightened rules to curb speculation. Strong forex reserves and improved risk sentiment supported the sharp rally.

New Delhi: The Indian Rupee saw its biggest single-day gain in nearly 13 years on Thursday, closing at 93.10 against the US dollar, as authorities stepped up efforts to curb currency speculation.

The sharp rally came after the Reserve Bank of India tightened rules in both domestic and offshore markets.

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“The move was largely driven by improved risk sentiment following US President Donald Trump’s speech, which hinted at negotiations rather than escalation, triggering a relief rally. However, uncertainty remains elevated, keeping volatility high in currency markets,” an analyst explained.

The rupee surged as much as 1.7 per cent to 93.25 during the day, marking its strongest rise since September 2013, as trading resumed after a three-day holiday break.

The central bank recently barred banks from offering rupee non-deliverable forwards to both resident and non-resident clients, and also restricted companies from rebooking cancelled forward contracts.

Earlier measures included capping banks’ net open rupee positions at $100 million and prohibiting foreign exchange derivative deals with related parties.

These steps are aimed at reducing speculative activity in the currency market and stabilising the rupee.

Analysts noted that India’s strong foreign exchange reserves, which stand at over $700 billion, also provide a cushion against volatility and give the central bank room to intervene if needed.

The rupee’s surge came even as global cues remained weak. Asian markets traded lower, with key indices such as Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI falling up to 3 per cent amid rising geopolitical tensions after US President Donald Trump signalled a possible escalation in West Asia.

Meanwhile, crude oil prices jumped sharply, adding to global uncertainty. Brent crude futures rose 5.24 per cent to $106.47 per barrel, while US WTI futures gained 4.5 per cent to $104.64.

Currency markets had remained shut earlier this week due to holidays including Mahavir Jayanti and the start of the new financial year, and will remain closed again on Friday for Good Friday.