Rupee jumps 91 paise to 95.80 against U.S. dollar in early trade
The Indian rupee rebounded to 95.80 against the U.S. dollar following intervention measures by the Reserve Bank of India. The central bank introduced new regulations on foreign exchange derivatives to curb volatility and reduce speculative demand for dollars.
Why it matters
Demonstrates central bank intervention strategies in emerging markets to stabilize currency during periods of high volatility.
The rupee rebounded sharply from a record low level, gaining 91 paise to 95.80 against the U.S. dollar in early trade on Monday (October 12, 2026), after the Reserve Bank of India stepped in with several measures to contain volatility in the currency exchange market.
The Reserve Bank, on Saturday (October 10, 2026), announced several measures, including a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions, to reduce dollar demand in the spot market and curb speculative positions.
Forex analysts said that these measures are expected to help the Indian currency sustain pressure from elevated crude oil prices and a strong dollar.
The RBI, in its October 10 circulars, barred authorised dealers from allowing traders to rebook cancelled rupee-linked foreign exchange derivative contracts, while continuing to permit rollovers on maturity subject to existing regulations.
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