Rupee rebounds from record low; gains 1.6% to 93.19/$:Indian currency rises 151 paise in a single day

The rupee recovered 151 paise from its record low level to trade at 93.19 against the US dollar in early deals on Thursday, 2 April, 2026. Earlier, the Reserve Bank of India (RBI) had introduced new restrictions on banks holding foreign currencies. The central bank’s move had come after rupee had fallen to its lowest every closing value of 94.84, last Friday, dragged down by headwinds, including trade disruptions due to the West Asia conflict. RBI in action: RBI has set limits on how much banks can hold foreign currencies overnight. The central bank has capped the overnight position at $100 million or around ₹940 crore. This rule forced banks to sell some of their dollar reserves, increasing the rupee value. What happened on Thursday? At the interbank foreign exchange, the rupee opened at 94.62 and rose sharply to 93.19 against the US dollar in early deals on Thursday, registering a gain of 151 paise or 1.6% from its previous close of 94.84 on Monday.
The local currency had breached the 95 level on Monday before closing at 94.70 versus the greenback. It had settled at a historic low of 94.84 against dollar on Friday, prompting the RBI to intervene. Rupee’s performance in 2026: The rupee has remained under stress since the beginning of 2026. In December 2025, it breached the 90-per-dollar mark for the first time. Within just 3 months of the new year, it has now breached the 94 mark, highlighting mounting pressure on the domestic currency. Impact of rupee depreciation Benefits Drawbacks Depreciation makes imports and overseas education costlier A weaker rupee directly raises the cost of imports, impacting everything from crude oil to electronics. It also makes foreign travel and education significantly more expensive. How is currency value determined? When a currency loses value against the US dollar, it is referred to as currency depreciation. A country’s foreign exchange reserves play a crucial role in determining currency strength. These reserves are used for international trade and payments. In simple terms, a balance between India’s dollar reserves and foreign demand for the rupee helps maintain currency stability. Any imbalance leads to volatility in the exchange rate.