Rupee logs biggest single-day gain in over 3-weeks; closes below 95-mark

The Indian rupee ended 44 paise stronger at 94.96 against the US dollar
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On Tuesday, the rupee recorded its largest one‑day rise in more than three weeks, supported by central‑bank action and dollar sales from exporters.

The Indian currency finished 44 paise higher at 94.96 per dollar, compared with the prior close of 95.40. During the session it swung between a high of 95.37 and a low of 94.94.

V Rama Chandra Reddy, Head of Treasury at Karur Vysya Bank, noted that market participants were discussing possible central‑bank intervention—specifically, dollar sales executed via public‑sector banks.

He added that pressure on the domestic currency eased because crude oil prices have remained modest and foreign portfolio investors are slowly returning to Indian markets, attracted by IPO opportunities.

Strong recovery

Amit Pabari, Managing Director of CR Forex Advisors, said the rupee experienced a robust rebound on Tuesday, jumping sharply from Monday’s three‑week trough to finish at 94.96—its strongest level in roughly a week—as domestic positives eclipsed external pressures.

“He explained that the main factor behind today’s movement was the ongoing drop in crude oil prices, with Brent hovering around $72 a barrel—its lowest point in over four months—after OPEC+ voted to raise output again and Saudi Aramco lowered the official selling price of its Arab Light crude for Asian buyers.”

Pabari emphasized that, for an oil‑importing nation such as India, cheaper crude cuts the import bill and lessens dollar demand, directly bolstering the rupee, while the currency also gained from stronger foreign portfolio inflows.

FPIs turned net buyers

In the latter half of June, foreign portfolio investors switched to net buying of Indian financial stocks, pouring in ₹14,634 crore after having been net sellers earlier that month.

“He said these inflows, fueled by global index rebalancing and value‑oriented buying, increased dollar availability domestically, while the greenback stayed largely range‑bound, letting domestic strengths exert a larger impact on the rupee.”

Pabari added that, although the rupee rose sharply today, the movement looks more like a corrective bounce than the beginning of a lasting upward trend.

Published on July 7, 2026