Representative picture.
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The Indian rupee closed almost unchanged on Monday (April 6, 2026), wedged between greenback gross sales spurred by the unwinding of arbitrage positions and importers’ hedging demand amid swirling dangers from the Iran warfare.
The rupee closed at 93.06 in opposition to the greenback, after closing at 93.10 in the earlier session on Thursday (April 2, 2026). The rupee had climbed almost 2% on Thursday (April 2, 2026), because it bounced again from a document low of 95.21 after the Reserve Bank of India doubled down on curbing hypothesis.
The foreign money rose to a two-week excessive of 92.7925 in early buying and selling on Monday (April 6, 2026), however shed a lot of it as importers stepped in to lock in hedges, whereas merchants additionally pointed to greenback demand linked to overseas portfolio outflows.
The heightened importer demand was additionally mirrored in hedging prices, which rose by the most for the reason that 2007-2009 international monetary disaster. Thin ahead market liquidity amid uncertainty over the fallout of the RBI’s measures to curb FX arbitrage trades amplified the transfer, together with a shift of offshore positions to the onshore market.
The 1-year dollar-rupee implied yield touched a peak of three.96% earlier than retreating to 3.57%. Concurrently, India’s one-year OIS charge fell almost 20 foundation factors to 6.17%, signalling disparate worth motion in markets that sometimes transfer in congruence with one another.
“USD/INR and forwards seem more driven by flows than fundamentals at the moment, which could persist this week as the impact of the RBI measures plays out,” an FX salesperson at a overseas financial institution mentioned.
Meanwhile, international markets had been on tenterhooks after U.S. President Donald Trump warned of “hell” for Iran except it reopened the Strait of Hormuz by Tuesday (April 7, 2026). Reports of a push for a ceasefire, although, helped calm some nerves and pushed Asian shares increased, whereas futures pointed to a optimistic begin on Wall Street.
Back in India, RBI’s financial coverage choice is due on Wednesday (April 8, 2026), and the central financial institution is broadly anticipated to preserve charges unchanged.
“In our view, the tone of the policy should be to demonstrate a sense of calm and reaffirm RBI’s commitment to temper any large market moves on the back of heightened uncertainty,” economists at Citi mentioned in a word.
Published – April 06, 2026 06:23 pm IST