3 hours ago
Rupee opens weaker at 93.31 per dollar as RBI partly rolls back recent FX curbs, markets wary of renewed hedging and geopolitical risks around US Iran tensions.
By Anshul April 21, 2026, 9:11:15 AM IST (Published)
2 Min Read
The Indian rupee opened weaker on Tuesday (April 21), slipping 18 paise to 93.31 against the US dollar, compared with Monday’s (April 20) close of 93.13, as markets weighed the impact of policy changes by the Reserve Bank of India and ongoing geopolitical uncertainties.
The central bank, after market hours on Monday (April 20), partially rolled back recent foreign exchange restrictions imposed on corporates, banks, and other market participants. These included withdrawing directions that barred banks from offering non-deliverable forwards (NDFs) to resident and non-resident users, and removing curbs that had prevented the rebooking of foreign exchange derivative contracts.
The earlier restrictions, introduced about three weeks ago, were aimed at curbing arbitrage between onshore and offshore markets. Along with measures to cap banks’ onshore position sizes, they had helped the rupee recover from its all-time low of 95.21 recorded in late March.
Market participants said the rollback could exert some pressure on the currency in the near term and marginally push up forward premiums, as it may reopen avenues for hedging and speculative positions.
“After all that has transpired, it is difficult to gauge how banks will respond, particularly whether they will allow corporates to undertake NDF trades,” a treasury official at a foreign bank said.
Beyond domestic factors, traders are also tracking global developments, particularly uncertainty around potential talks between the United States and Iran. The deadline for a two-week ceasefire is set to lapse this week, raising concerns about possible escalation.
Analysts noted that markets are currently pricing in de-escalation, but any flare-up—especially around key oil transit routes—could trigger a spike in crude prices and lead to a broader risk-off sentiment, weighing on emerging market currencies including the rupee.
Meanwhile, Asian equities were mostly higher, tracking gains in US equity futures, offering limited support to regional currencies.
-With Reuters inputs
