Rupee jumps 40 paise to close at 95.38 against U.S. dollar

The Indian rupee experienced a 40-paisa increase on Tuesday, closing at 95.38 against the U.S. dollar, marking the third consecutive day of strength. The Reserve Bank of India (RBI) introduced several measures to reduce demand for the dollar in the spot market and curb speculative positions. These include a dedicated dollar window for oil marketing companies, higher costs for certain foreign exchange hedging transactions, and tighter rules on forex derivatives trades.

The rupee opened at 95.53 in intraday trading but fell back to the closing level of 95.38. Over the past three trading sessions, the rupee gained 150 paise against the dollar. Analyst Dilip Parmar attributes the recent strength to regulatory actions, dollar weakness, lower crude oil prices, and recovery in domestic equities. Finance Minister Nirmala Sitharaman acknowledged the rupee's depreciation over the past year and a half and stated that the RBI will continue efforts to prevent excessive volatility in the domestic currency.