Rupee jumps 77 paise, logs sharp gains for second day after RBI measures
New Delhi, Oct 13
The Indian rupee appreciated by 77 paise against the US dollar in early trade on Tuesday supported by RBI measures aimed at reducing immediate dollar demand and curbing excessive positions in the foreign exchange market.
The domestic currency opened at 95.17 -- up 0.64 paise -- then gained ground to touch 95.05 -- up 77 paise -- over its previous close.
The measures including a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions are expected to reduce dollar demand in spot market and curb speculative positions against rupee.
On Monday, the rupee appreciated 93 paise, logging its steepest single-day gain in more than six months, to close at 95.78 against the US dollar.
On outlook for the rupee, experts expect the Indian currency to trade in 95.60-97.50 per dollar range by end-2026 with most projections clustering around 96-97 per dollar mark.
Earlier in October, the Reserve Bank of India tightened rules governing forex derivatives trades to curtail speculative bets against rupee and asked banks to create 20 per cent reserve for dollar purchases of over $2 million.
In another set of measures announced Saturday on derivatives front, RBI said authorised dealers should not permit users to rebook any foreign exchange derivative contract involving INR, whether deliverable or non-deliverable, which has been cancelled.
Meanwhile, dollar index -- which gauges greenback's strength against basket of six currencies -- was trading lower by 0.15 per cent at 102.43.
Meanwhile, Brent crude -- global oil benchmark -- was trading lower by over 1 per cent at $105.47 per barrel.
According to experts. The US dollar index hovered around 102.5 Tuesday, remaining near its strongest level since April 2025 as investors awaited key inflation reports for clues about Federal Reserve's monetary policy outlook.
— IANS
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