Mumbai, April 1 The rupee gained 15 paise to 94.70 against the US dollar in early trade on Wednesday, tracking positive cues from domestic equity markets and the retreat of the US dollar overseas.
However, the local currency remained under pressure due to higher crude oil prices and sustained withdrawal of foreign funds, even as banks moved to cut their net open position in the currency following the RBI mandate, forex traders said.
Through its circular dated March 27, 2026, the RBI capped the Net Open Position (NOP-INR) for banks at USD 100 million, with compliance required by April 10.
At the interbank foreign exchange, the rupee opened stronger at 93.62 but pared all gains to trade at 94.70 against the greenback in early deals, registering a rise of 15 paise from its previous close.
On Monday, the currency breached the 95/USD level for the first time, settling at an all-time low of 94.85 against the greenback.
The foreign exchange markets were closed on Tuesday due to a holiday on Shri Mahavir Jayanti.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.13 per cent lower at 99.63.
Brent crude, the global oil benchmark, was trading at USD 105.53 per barrel, up 1.50 per cent, in futures trade.
On the domestic equity market front, the Sensex surged 1722.48 points or 2.39 per cent to 73,670.03 in early trade, while the Nifty climbed 540.55 points or 2.42 per cent to 22,871.95.
The positive momentum was fueled by the hope of ending the West Asia conflict after US President Donald Trump said on Tuesday that the United States will be done attacking Iran, probably in two to three weeks, and that the US "will not have anything to do with" what happens next in the Strait of Hormuz.
The White House said Trump will deliver a public address Wednesday evening on the Iran war.
Foreign institutional investors sold equities worth Rs 11,163.06 crore on a net basis on Monday, according to exchange data.
Finance Minister Nirmala Sitharaman on Monday said the country's economic fundamentals are strong, and compared to other emerging market economies, the Indian rupee is "absolutely going fine" against the US dollar.
Since the commencement of the West Asia conflict on February 28, 2026, the rupee has depreciated by more than 4 per cent. It has depreciated nearly 10 per cent against the US dollar in the 2025-26 fiscal year.