2 min readUpdated: Apr 2, 2026 09:45 AM IST
The Rupee (INR) surged in early Thursday trade after the Reserve Bank of India’s latest steps to rein in speculation led market participants to expect a wave of onshore dollar selling as positions are unwound. In initial trade, the rupee strengthened to 93.53 against the US dollar, marking a 1.4% gain from its closing level on Monday, reported news agency Reuters.
The central bank has ramped up its efforts to contain arbitrage activity and speculative trades that have been weighing on the currency. These moves come as it navigates concerns around India’s current account, alongside ongoing weakness in capital flows, the agency report said.
On Wednesday, the RBI tightened its grip further by restricting banks from offering rupee non-deliverable forwards to both resident and non-resident clients. It also barred companies from rebooking forward contracts that had previously been cancelled.
Meanwhile, escalating tensions in the Middle East have pushed energy prices higher, with Brent crude futures rising roughly 5% to $106 per barrel on Thursday.
Trump’s remarks on oil
The uptick followed remarks from US President Donald Trump, who said the US “does not need the Strait of Hormuz” and asked allies to “grab Hormuz”. He also asked the world to buy oil from the US.
He also said the US could strike Iran “extremely hard” within weeks, adding that military objectives were nearly met and the conflict was nearing its conclusion. However, he did not provide a timeframe for the US’s exit from the Middle East.
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