Indian Rupee Strengthens Amid Central Bank Measures to Curb Dollar Demand
Rupee ends stronger, trims underperformance versus Asia FX on RBI measures
The Economic TimesImage: The Economic Times
The Indian rupee strengthened by 0.3% to close at ₹92.9250 on Friday, following measures by the Reserve Bank of India (RBI) to reduce dollar demand from state-run oil companies. This marks a recovery from a record low of ₹95.21 per dollar in March, although the rupee remains the weakest among major Asian currencies in 2026.
- 01Rupee rose 0.3% to close at ₹92.9250 on Friday.
- 02Central Bank measures have helped stabilize the rupee after it hit a record low of ₹95.21.
- 03The rupee has gained about 2% since the first measures were announced on March 27.
- 04Despite recent gains, the rupee remains the weakest among major Asian currencies in 2026.
- 05Investors are cautious due to ongoing risks from elevated energy prices.
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On Friday, the Indian rupee appreciated by 0.3%, closing at ₹92.9250 after a series of measures by the Reserve Bank of India (RBI) aimed at curbing dollar demand from state-run oil companies. This follows a recovery from a record low of ₹95.21 per dollar on March 30. The RBI has implemented crisis-era tools to support the currency, which has been under pressure from foreign portfolio outflows and concerns regarding India's current account balance. The rupee reached a one-week high of ₹92.66 during trading. Despite these recent gains, the rupee is still the weakest currency among major Asian peers in 2026, primarily due to weak capital flows and the economic impact of high energy prices. Analysts note that while countries like Japan and South Korea have robust reserves to manage fuel costs, India, along with the Philippines and Indonesia, faces greater vulnerability due to thinner economic buffers. Investors are also closely monitoring potential discussions between the U.S. and Iran that could affect oil prices, which recently saw Brent crude futures drop by 2% to $97 per barrel.
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The strengthening of the rupee could help stabilize import costs for consumers and businesses, particularly in the energy sector.
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