Rupee made a smart recovery on Thursday after tanking to close at a record low the previous day on heavy RBI intervention in the forex market.
Rupee closed 55 paise stronger at 91.60 per US Dollar against previous close 92.15. The Indian currency had closed at an all-time low on Wednesday amid concerns over the negative impact that the spike in global crude oil prices could have on India’s current account balance.
Despite the Rupee strengthening against the Dollar, it continues to be remain under pressure due to ripple impact from the West Asia war. If the war lingers, oil prices could go up further, leading to India’s import bill going up, leading to weakening of the currency.
Abhishek Goenka, Founder & CEO, IFA Global, said: “The Indian Rupee remained volatile today after breaching the ₹92 per dollar mark in the previous session amid heightened geopolitical tensions in the Middle East. The currency traded within an intraday range of ₹91.40–₹91.6425 per dollar following the intervention by the Reserve Bank of India, which reportedly sold dollars through state-run banks to stabilise the currency.”
He noted that the earlier pressure was largely driven by a surge in crude oil prices and a broader global risk-off sentiment, which strengthened the US Dollar and weighed on oil-import-dependent currencies like the Rupee. Market participants remained defensive, with importer demand for Dollars persisting through the session.
“Sentiment improved marginally later in the session after reports that Iran signalled a conditional willingness to abandon its nuclear programme if the United States presents an acceptable alternative proposal. In the near term, the rupee is likely to remain sensitive to crude price movements and geopolitical developments.” Goenka said.
Published on March 5, 2026
