Hyderabad: The Indian rupee gained 77 paise against the US dollar on Tuesday, strengthening for a second consecutive session. It traded at 95.05 in morning foreign exchange dealings. Reserve Bank of India (RBI) measures to curb dollar demand and speculative trading supported the currency.
The rupee had gained 93 paise on Monday to close at 95.78. That marked its biggest single-day rise in six months. The latest Indian rupee gains followed regulatory steps aimed at easing pressure on the foreign exchange market.
The RBI introduced a dedicated dollar window for oil marketing companies. The measure is expected to reduce their demand for dollars in the spot market. The central bank also increased costs for certain foreign exchange hedging transactions to discourage speculative activity.
In another step, the RBI barred traders from rebooking foreign exchange derivative contracts that had recently been cancelled. These measures sought to curb speculative positions and reduce pressure on the rupee.
Indian rupee gains as dollar index and crude prices ease
External market conditions also supported the currency. The US dollar index, which measures the dollar against six major currencies, fell 0.15% to 102.43.
Crude oil prices also declined, providing further support to the rupee. Brent crude futures fell by more than 1% to $105.47 a barrel. Lower oil prices can ease pressure on India’s import bill and foreign exchange demand.
Market experts expect the rupee to trade between 95.60 and 97.50 against the dollar by the end of 2026. The forecast points to continued movement within that range despite the recent recovery.
Tuesday’s gain followed Monday’s sharp advance, with RBI measures, a weaker dollar index and lower crude prices supporting the currency.