DIVYA DELHI : The Indian rupee staged a strong recovery in early trade on Monday, gaining 91 paise to reach 95.80 against the US dollar following measures announced by the Reserve Bank of India (RBI). The recovery comes amid concerns over the domestic currency’s recent weakness and efforts to stabilise the foreign exchange market. The RBI’s measures are aimed at addressing pressure on the rupee and improving stability in the currency market. The sharp rebound reflects the immediate impact of the central bank’s steps on market sentiment, although the currency’s future movement will depend on several domestic and global factors. The RBI has also introduced stricter rules for foreign exchange derivative transactions and a dedicated dollar supply mechanism for major state-owned oil companies. These steps are intended to reduce pressure on the spot market and discourage speculative activity. Despite the recovery, market experts remain cautious about the rupee’s outlook. Elevated crude oil prices, foreign investor outflows and continued strength in the US dollar could create fresh challenges for the Indian currency. Analysts say the sustainability of the rebound will depend on global market conditions and the effectiveness of the RBI’s measures. As trading progresses, investors will closely monitor currency movements and further developments in the foreign exchange market to assess whether the rupee can maintain its gains.
