Rupee Recovers 62 Paise to 96.20 Per Dollar on RBI Intervention

Mumbai: The Indian rupee snapped a nine-day losing streak, recovering sharply by 62 paise on Thursday to become best performing Asian currency for the day on hopes of Middle East war ending, retracement in oil prices and aggressive RBI intervention. According to traders, RBI sold $ 5-6 billion during the day in order to control the currency’s slide.

US Treasury yields and oil prices cooled after US President Donald Trump indicated that negotiations with Iran were entering the final stages while warning of further attacks unless Iran agrees to a deal. Trump also said the United States was willing to wait a few days for the "right answer" from Iran.

“RBI has been quite aggressive in selling dollars today and could have sold $ 5-6 billion in controlling the currency. The rupee posted its best single day gain in two weeks as it closed 62 paisa higher than yesterday’s closing, a 0.64 per cent gain. The range for the rupee tomorrow is expected between 95.75 to 96.50,” said Anil Bhansali, head of treasury at Finrex Trading Advisors.

At the interbank foreign exchange market, the rupee opened at 96.30 against the dollar. It made a high of 96.50 and a low of 95.99 before closing the day at 96.20, up 62 paise compared to its previous closed of 96.82 per dollar.

Market participants said that the rupee rose from a low of 96.96 seen on Monday after the RBI sold dollars in Non-Deliverable Forward market and helped it to strengthen to 95.30.

Oil prices rose slightly to $106.37 per barrel before falling back while the Dollar Index that gauges the greenback’s strength against a basket of six currencies was steady at 99.20 as risk sentiment improved modestly on hopes of US-Iran deal.

The rupee has been in midst of a rapid and dramatic depreciation streak, falling by over 6 per cent in the calendar year 2026 against the dollar and touching successive record lows. The unit has emerged as a regional underperformer.

According to reports, the RBI may consider a rate hike, or bring FCNR deposit scheme to attract dollar inflows in the country.

Ponmudi R, CEO of Enrich Money said, “The RBI intervention provided some near-term relief to the rupee, after seven consecutive sessions of fresh all-time lows. However, the recovery in the currency remains fragile, with underlying pressures from elevated energy prices, strong dollar demand and widening trade imbalances still firmly in place. While further intervention may help moderate volatility temporarily, it is unlikely to provide lasting relief unless the broader macro and geopolitical pressures begin to ease.”