The continuous fall of the rupee against the dollar had become a big challenge for the country's Central Bank. The rupee had fallen below the level of 94 against the dollar. Which was a historic decline. But on Friday, RBI once again had to intervene in the currency market and its effect was visible on Monday. The rupee witnessed a rise of more than one percent against the dollar and recovered from the level of 94 and strengthened to the level of 93. According to experts, the rupee may strengthen against the dollar in the coming days, but due to the war, the rupee may also have to bear the loss of the increase in the dollar index. Let us also tell you what kind of figures are being seen in rupee terms in the currency market.

Strong rise in rupee against dollar

In early trade on Monday, the rupee improved 128 paise from its all-time low to 93.57 against the US dollar after the Reserve Bank reduced the overnight net open position limit for banks to $100 million. Forex traders said the rupee opened stronger as banks which generally have 'long positions' (buy positions) may have to reduce their positions in the domestic currency markets as per RBI directive. Through its circular issued on March 27, 2026, RBI fixed the Net Open Position (NOP-INR) limit for banks at $100 million, which is mandatory to be followed by April 10. At the Interbank Foreign Exchange, the rupee opened at 93.62 and then strengthened further to 93.57 against the US dollar. In this way it registered an increase of 128 paise from its previous closing price. On Friday, the rupee fell sharply by 89 paise to close at a historic low of 94.85 against the US dollar.

Why did the rupee rise?

Amit Pabari, MD, CR Forex Advisors, said that as banks start revising their positions, they may sell dollars in the market, which may provide support to the rupee for some time. This begins a phase of relief, which is not due to any major economic fundamental changes, but due to unwinding of positions. Nevertheless, it is very important for the near future. However, the USD/INR pair remains under pressure from high levels of the dollar index and crude oil prices. According to Forex traders, the dollar index remains firmly above the 100 level due to increased demand for safe-haven assets, limiting the scope for any major recovery in the rupee.

Situation from stock market to dollar

1. Meanwhile, the dollar index—which measures the strength of the US dollar against a basket of six different currencies—was trading 0.06 per cent lower at 100.09.
2. Brent crude, considered the global oil benchmark, was trading at USD 115 per barrel with a gain of 2.16 percent in futures trade.
3. Talking about the domestic stock market, Sensex fell 1,191.24 points to 72,391.98 in early trade, while Nifty fell 349.45 points to 22,470.15.
4. According to exchange data, foreign institutional investors sold shares worth Rs 4,367.30 crore on a net basis on Friday.

The situation of rupee remains delicate

The impact of geopolitical tensions was immediately visible on oil prices. As the fear of supply disruption increased, crude oil prices increased. Pabari said that this situation is very important for India. Being a major oil importing country, rising oil prices increases the demand for dollars, which puts direct pressure on the rupee. He further said that the overall position of the rupee still remains fragile; Rising oil prices, ongoing geopolitical tensions and a strong dollar environment are continuing to put pressure on the currency.