The Indian rupee opened 35 paise stronger at 94.71 per U.S. dollar, a lift from 95.06 the previous day.
RBI’s recent reserve‑requirement adjustment for large FX transactions has tightened market liquidity, prompting banks to pause quoting and amplifying price swings, said a senior treasury officer at a major bank.
A currency trader at a foreign bank said there had been a 'fair amount' of unwinding of long USD/INR positions this week, which has lifted the rupee in the offshore NDF market and may encourage further cuts in dollar positions.
While the dollar index edged higher and other Asian currencies weakened, the rupee charted a divergent path, reflecting RBI’s resolve to curb dollar demand.
Rupee forward premiums have surged this week amid tighter liquidity; RBI’s clarifications may ease disruptions, but uncertainty remains over the policy’s future trajectory and the impact of broader dollar movements.