Noida, Apr 9 (APAC Media): The Indian rupee remained range‑bound on Thursday, oscillating between Rs 92.5 and Rs 93 per U.S. dollar, as both global and domestic factors tempered market sentiment.
The currency had gained in recent sessions, supported by softening crude oil prices and optimism over a temporary Middle East ceasefire, but uncertainty about the truce’s longevity curtailed further upward movement in early trading.
On Wednesday, the rupee gained nearly 0.5 per cent, closing around Rs 92.58 against the dollar, bolstered by the U.S.–Iran ceasefire and improved risk appetite. Forward premiums also declined as oil prices plunged sharply after news of the temporary truce, indicating reduced expectations of sustained volatility.
Reserve Bank of India (RBI) Governor Sanjay Malhotra addressed market concerns on Wednesday, emphasising that recent curbs on banks’ foreign exchange positions and non‑deliverable forward trading are temporary measures aimed at managing short‑term currency volatility and do not reflect a permanent shift in policy. “These measures are not indicative of long‑term structural change,” he said, underscoring the central bank’s commitment to orderly market functioning.
Officials emphasised that India’s foreign exchange reserves, standing at roughly $697 billion, remain robust, offering a solid cushion against external shocks even after recent measures to stabilise the rupee.
Market analysts noted that while the rupee has been buoyed by some positive developments, its outlook continues to be influenced by global risk sentiment, crude oil prices, and capital flows. Uncertainty over the Middle East ceasefire and cautious foreign investor participation have kept trading range‑bound.
Traders said the currency is likely to remain sensitive to further updates on geopolitical developments and crude supply dynamics, with any sustained improvement in risk appetite likely supporting the rupee, while renewed tensions could weigh on it.
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