Rupee Declines as RBI Eases Forex Derivative Curbs
Rupee falls after RBI partially rolls back forex curbs on derivatives
Business Standard
Image: Business Standard
The Indian rupee fell to 93.50 per dollar after the Reserve Bank of India (RBI) partially rolled back forex curbs on derivatives. Despite this decline, analysts suggest that the rupee's depreciation will be limited due to ongoing measures supporting the currency amid rising global oil prices.
- 01The rupee settled at 93.50 per dollar, down 0.4% from the previous close.
- 02The RBI's easing of forex curbs aims to stabilize the currency after recent pressures.
- 03Global factors, including rising crude oil prices, continue to impact the rupee's performance.
- 04The rupee has appreciated 1.41% in April, making it the fifth-best performing Asian currency this financial year.
- 05Market estimates indicate banks hold net open positions worth $30 billion–$35 billion.
Advertisement
In-Article Ad
On Tuesday, the Indian rupee depreciated to 93.50 per dollar, a 0.4% decline from the previous close, following the Reserve Bank of India's (RBI) partial rollback of forex derivative curbs. This adjustment allows banks more flexibility in arbitrage trades, yet analysts like Anil Kumar Bhansali from Finrex Treasury Advisors LLP caution that the rupee's depreciation will be contained due to supportive measures, including a dollar window for oil companies. Despite the recent drop, the rupee has shown resilience, appreciating 1.41% in April and ranking as the fifth-best performing Asian currency this financial year. However, pressures from global energy markets, with crude oil prices around $95 per barrel, continue to challenge the rupee's stability. The RBI's governor emphasized the bank's role in foreign exchange interventions, while market participants noted that the rollback of restrictions is unlikely to have an immediate impact on the spot rupee, as broader global dynamics remain influential. The one-year forward premium fell sharply by 30 basis points after the RBI's announcement, indicating market adjustments to the new rules.
Advertisement
In-Article Ad
The depreciation of the rupee may lead to higher import costs, affecting prices for consumers, particularly for oil and other imported goods.
Advertisement
In-Article Ad
Reader Poll
How do you view the RBI's decision to ease forex curbs?
Connecting to poll...
More about Reserve Bank of India

Essential Steps to Combat Credit Card Fraud in India
Mint • Apr 21, 2026

Rupee Declines 0.4% to 93.49 per Dollar Following RBI's Eased Derivative Restrictions
Business Standard • Apr 21, 2026

Indian Stock Market Reaches Six-Week High Amid Banking Gains and Eased RBI Restrictions
Business Standard • Apr 21, 2026
Read the original article
Visit the source for the complete story.

