The rupee rebounded sharply from a record low level, gaining 91 paise to 95.80 against the U.S. dollar in early trade on Monday (October 12, 2026), after the Reserve Bank of India stepped in with several measures to contain volatility in the currency exchange market.

The Reserve Bank, on Saturday (October 10, 2026), announced several measures, including a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions, to reduce dollar demand in the spot market and curb speculative positions.

Forex analysts said that these measures are expected to help the Indian currency sustain pressure from elevated crude oil prices and a strong dollar.

The RBI, in its October 10 circulars, barred authorised dealers from allowing traders to rebook cancelled rupee-linked foreign exchange derivative contracts, while continuing to permit rollovers on maturity subject to existing regulations.

It also reduced the threshold for undertaking foreign exchange derivative transactions without establishing an underlying exposure to $5 million from $100 million, across authorised dealers and recognised stock exchanges.

The central bank also introduced a Foreign Exchange Risk Reserve (FERR), requiring authorised dealers to maintain with the RBI, in cash, 20 per cent of the rupee equivalent of the notional amount of each rupee-linked foreign exchange derivative contract exceeding USD 2 million, where the transaction is undertaken to hedge current account exposures involving the purchase of foreign currency against the rupee.

The RBI said the measures were aimed at strengthening market discipline and ensuring appropriate risk management while maintaining an orderly and transparent foreign exchange market.

At the interbank foreign exchange market, the rupee opened stronger at 95.61 and pared some gains in early deals to trade at 95.80 against the greenback, registering a rise of 91 paise over its previous close.

The Indian currency closed Friday’s session with a gain of 17 paise at 96.71, a day after falling 13 paise to hit its lowest closing level of 96.88 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.08% at 101.94.

The Reserve Bank on Saturday (August 1, 2026) said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted $40.82 billion till July 31.

The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026, the central bank said in a statement.

A strong mobilisation was witnessed through Foreign Currency Non-Resident (Bank) or FCNR (B) deposits.

Of the total inflows, FCNR (B) deposits accounted for $36.725 billion, while Overseas Foreign Currency Borrowings (OFCBs) contributed $2.575 billion while External Commercial Borrowings (ECBs) amounted to $1.516 billion.

With a view to strengthening the country’s balance of payments and incentivising capital inflows, the Reserve Bank of India (RBI) had announced a series of measures, including a facility for offering concessional swaps for fresh FCNR(B) deposits, OFCB and ECB inflows on June 5.

Based on the data received from authorised dealer banks, the position of forex inflows mobilised till July 31, 2026, under the swap facility was $40.816 billion, the central bank said in a statement.

The facility was operationalised on June 8, 2026, and is available up to September 30, 2026, for the FCNR (B) deposits and up to December 31, 2026, for the OFCBs and ECBs.

The measures were announced as part of the RBI’s efforts to strengthen India’s external sector position and support foreign exchange liquidity amid global market uncertainties.