Rupee rises 33 paise as RBI curbs speculation; equities fall on geopolitical jitters

The rupee gained 33 paise to 92.85 against the US dollar in early trade on Monday, supported by the Reserve Bank of India’s (RBI’s) latest measures to curb speculative positions in the forex market. The central bank has capped banks’ net open positions at $100 million, aiming to stabilise the currency. 

At the interbank foreign exchange, the domestic unit opened at 93.13 and strengthened further to 92.85 against the greenback, marking a gain from its previous close of 93.18. 

Global headwinds continue to weigh 

Despite the early gains, forex traders flagged persistent pressure on the rupee due to sustained foreign capital outflows, a firm US dollar, and elevated crude oil prices amid volatile geopolitical conditions. 

Tensions escalated after US President Donald Trump issued a deadline to Iran to reopen the Strait of Hormuz, warning of potential strikes on its power infrastructure in case of non-compliance, raising concerns over global oil supply disruptions. 

The dollar index, which measures the greenback against a basket of six currencies, was up 0.14% at 100.17. 

Previous session saw sharp surge 

On Thursday, the rupee recorded one of its sharpest single-day gains in recent years, rallying 152 paise to settle at 93.18 after the RBI announced a series of steps to restrict speculative activity in onshore forward markets. Currency and equity markets were closed on Friday on account of Good Friday. 

Equity markets decline amid uncertainty 

Domestic equity benchmarks came under pressure, tracking global uncertainties and fresh geopolitical concerns. 

The 30-share BSE Sensex fell 270.13 points to 73,049.42 in early trade, while the NSE Nifty50 declined 93.60 points to 22,619.50. Losses deepened later, with the Sensex down 509.77 points at 72,822.60 and the Nifty slipping 141.20 points to 22,571.90. 

Among Sensex constituents, Reliance Industries, Kotak Mahindra Bank, Sun Pharma, InterGlobe Aviation, Adani Ports and ICICI Bank were among the major laggards. In contrast, Trent, Titan, Tech Mahindra and Bharat Electronics traded with gains. 

Oil rises; FIIs continue selling 

Brent crude, the global oil benchmark, rose 0.74% to $109.8 per barrel, adding to inflationary concerns for import-dependent economies like India. 

Foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹9,931.13 crore on Thursday. However, domestic institutional investors (DIIs) provided some support, purchasing shares worth ₹7,208.41 crore, as per exchange data.