The rupee recovered 151 paise from its record low level to trade at 93.19 against the US dollar in early deals on Thursday, backed by the Reserve Bank's move to restrict banks' net open position in the onshore forward delivery market.

The domestic unit, however, faced pressure due to unabated withdrawal of foreign capital, strengthening dollar and rising crude oil prices amid volatile geopolitical situation, forex analysts said.

At the interbank foreign exchange, the rupee opened at 94.62 and rose sharply to 93.19 against the US dollar in early deals, registering a gain of 151 paise or 1.6 per cent from its previous close.

The local currency breached the 95 level on Monday before closing at 94.70 versus the greenback. It had settled at a historic low of 94.84 against dollar on Friday, prompting the RBI to intervene.

Through its circular dated March 27, 2026, RBI capped the net open position on the Indian rupee for banks at USD 100 million, mandating compliance by April 10.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.32 per cent higher at 99.77.

Brent crude, the global oil benchmark, was trading at USD 106.06 per barrel, up 4.84 per cent, in futures trade.

On the domestic equity market front, Sensex tumbled 1,312.91 points or 1.80 per cent to 71,821.41 in early trade, while the Nifty slumped 410.45 points or 1.81 per cent to 22,383.40.

Foreign institutional investors sold equities worth ₹8,331.15 crore on a net basis on Wednesday, according to exchange data.

"The high crude price, the widening trade deficit, the fear of declining remittances and sustained FPI selling are acting cumulatively to put high pressure on the rupee," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Since the beginning of the West Asia war on February 28, 2026, the rupee has depreciated over 4 per cent. During the fiscal year ended March 2026, the currency has declined nearly 10 per cent against the US dollar.

Government data released on Wednesday showed that the government's GST revenues grew about 9 per cent in March, scaling to the pre-tax cut level of over Rs 2 lakh crore, the third highest monthly collection in the 2025-26 fiscal, buoyed by mop-ups from imports as well as domestic sales and purchases.

Published on April 2, 2026