NEW DELHI — The Indian rupee recorded its sharpest single-day gain in nearly 13 years on Thursday, closing at 93.10 against the U.S. dollar as authorities intensified efforts to curb currency speculation.
The currency surged as much as 1.7 percent to 93.25 במהלך the session, marking its strongest rise since September 2013, as trading resumed after a three-day holiday break.
The rally followed a series of measures by the Reserve Bank of India aimed at stabilizing the currency in both domestic and offshore markets. The central bank recently barred banks from offering rupee non-deliverable forwards to resident and non-resident clients and restricted companies from rebooking canceled forward contracts.
Earlier steps included capping banks’ net open rupee positions at $100 million and prohibiting foreign exchange derivative transactions with related parties.
“These steps are aimed at reducing speculative activity in the currency market and stabilizing the rupee,” analysts said.
Market sentiment was also supported by improved global risk appetite after remarks by President Donald Trump suggested a possible shift toward negotiations rather than escalation in geopolitical tensions.
“The move was largely driven by improved risk sentiment following U.S. 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 said.
Despite the rupee’s strong performance, global cues remained weak. Asian markets traded lower, with Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi falling by as much as 3 percent amid rising geopolitical tensions.
Oil prices also surged, adding to uncertainty. Brent crude rose 5.24 percent to $106.47 per barrel, while U.S. West Texas Intermediate futures gained 4.5 percent to $104.64.
Analysts noted that India’s foreign exchange reserves—exceeding $700 billion—provide a buffer against volatility and give the central bank flexibility to intervene if needed.
Currency markets had been closed earlier this week due to holidays, including Mahavir Jayanti and the start of the new financial year, and will remain shut again on Friday for Good Friday. (Source: IANS)
