On Monday, the rupee closed at 93.04 (provisional) against the US dollar, up 14 paise, following Reserve Bank of India’s initiatives aimed at curbing speculation and reducing rupee volatility. Forex traders noted that while the RBI measures have proved quite positive for the rupee, continued foreign capital outflows, strengthening dollar, and rising crude oil prices amid an unstable geopolitical environment continue to put pressure on the rupee. To curb speculative activities, the RBI tightened its rules and capped banks’ ‘net open positions’ at $100 million. Let us take a look at the data seen in the currency market after the close of trading.
Continuous rise in rupee
At the interbank foreign exchange market, the rupee opened at 93.13 against the US dollar; After this, it gained momentum during intraday trading and reached a high of 92.79 against the dollar. By the end of Monday’s trading session, the rupee stood at 93.04 (provisional)—a gain of 14 paise over its previous closing price. On Thursday, the rupee recorded its biggest one-day gain in many years, and closed at 93.18 against the US dollar, gaining 152 paise, as the Reserve Bank imposed a series of measures to limit banks’ activities in the onshore forward market. Equity and forex markets remained closed on Friday due to Good Friday. The impact of global tensions remains on the rupee. US President Donald Trump has escalated tensions with Iran, and set a deadline of Tuesday for the reopening of the Strait of Hormuz, warning that failure to meet it could lead to attacks on the country’s power infrastructure.
dollar and market game
Meanwhile, the dollar index—which measures the dollar’s strength against a basket of six currencies—was trading at 99.87, down 0.15 percent. Global oil benchmark Brent crude was trading at $107.29 a barrel in futures trading, down 1.61 percent, as investors focused on Trump’s deadline to reopen the Strait of Hormuz. According to forex traders, the rupee-dollar pair may see short-term strength, even as its broader movements remain influenced by global dollar liquidity, fluctuations in crude oil prices and changing geopolitical situations. Talking about the domestic equity market, Sensex rose 787.30 points to close at 74,106.85, while Nifty rose 255.15 points to 22,968.25.
foreign exchange reserves statistics
According to exchange data, foreign institutional investors (FIIs) sold shares worth ₹9,931.13 crore on a net basis on Thursday. Meanwhile, the Reserve Bank of India (RBI) on Friday reported that during the week ended March 27, India’s foreign exchange reserves declined by $10.288 billion to $688.058 billion. In the previous reporting week, total reserves had declined by $11.413 billion to $698.346 billion.
Slowdown in service PMI
On the domestic macroeconomic front, a monthly survey showed that India’s services sector growth in March was the slowest in the last 14 months, reflecting a slowdown in new business activity. The seasonally adjusted HSBC India Services PMI Business Activity Index fell to 57.5 in March from 58.1 in February, reflecting the slowest growth in new business and activity since January 2025.
