New Delhi, October 13, 2026 (Yes Punjab News)
The Indian rupee strengthened by 77 paise against the US dollar in early trade on Tuesday, extending its gains for a second consecutive session after the Reserve Bank of India (RBI) introduced measures to ease immediate dollar demand and curb excessive positions in the foreign exchange market.
The domestic currency opened at 95.17 against the dollar before appreciating further to touch 95.05, compared with Monday’s closing level of 95.78.
The latest recovery follows a 93-paise gain on Monday, the rupee’s sharpest single-day appreciation in more than six months.
The RBI’s measures include a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions. These steps are expected to reduce demand for dollars in the spot market and discourage excessive speculative positions against the rupee.
Earlier in October, the central bank tightened regulations governing foreign exchange derivatives trading to curb speculative bets against the domestic currency. It also directed banks to maintain a 20 per cent reserve against dollar purchases exceeding $2 million.
In another measure announced on Saturday, the RBI instructed authorised dealers not to permit customers to rebook cancelled foreign exchange derivative contracts involving the Indian rupee, whether deliverable or non-deliverable.
Despite the recent gains, market experts expect the rupee to remain under pressure over the longer term. Projections suggest the currency could trade in the range of 95.60 to 97.50 per dollar by the end of 2026, with most estimates concentrated around the 96-97 levels.
In the broader currency market, the dollar index, which measures the US currency against a basket of six major currencies, was down 0.15 per cent at 102.43.
Brent crude, the global oil benchmark, declined by more than 1 per cent to $105.47 per barrel, offering some relief amid concerns over India’s import bill and demand for foreign currency.
Meanwhile, the dollar index remained near 102.5, close to its strongest level since April 2025, as investors awaited key US inflation data for clues about the Federal Reserve’s monetary policy outlook.
The rupee’s recent gains indicate an immediate market response to the RBI’s interventions, although its subsequent movement will also depend on global dollar trends, crude oil prices and foreign exchange demand.
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