Rupee Jumps Over 1% to 95.76 After RBI’s Toughest Steps Since 2013
The rupee opened at 95.76 per dollar on Monday after the RBI’s strongest currency-defence measures since the 2013 taper tantrum. What the new rules mean, explained simply.
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“Rupee Jumps Over 1% to 95.76 After RBI’s Toughest Steps Since 2013”
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12 Oct 2026
Key Highlights
- Rupee rebounds: Opened at 95.76 per dollar, up more than 1%, from Friday’s close of 96.71.
- The trigger: RBI’s strongest currency measures since the 2013 taper tantrum.
- Key steps: A 20% Foreign Exchange Risk Reserve on certain derivatives, tighter hedging rules and a special dollar window for state-run oil companies.
- The line in the sand: Analysts expect the RBI to defend the 97-per-dollar level.
- Context: The rupee had neared a record low of about 97 before the measures.
The Indian rupee opened more than 1% higher at 95.76 against the US dollar on Monday, after the Reserve Bank of India rolled out some of its strongest measures to defend the currency since the 2013 taper tantrum. The rupee had closed at 96.71 on Friday.
In offshore markets, one-month non-deliverable forwards showed the rupee strengthening as much as 2.7% to 94.17 before paring gains, according to NDTV Profit.
What the RBI Has Done, Explained
| Measure | What it means |
|---|---|
| Lower threshold for unhedged derivatives ($100 mn → $5 mn) | Far fewer firms can take unhedged currency bets |
| No rebooking of cancelled contracts | Stops firms from repeatedly cancelling and rebooking to profit from moves |
| Undertaking against double hedging | Users must confirm the same exposure isn’t hedged with another bank |
| 20% Foreign Exchange Risk Reserve (FERR) | For contracts above $2 mn where users buy dollars against rupees, banks must park 20% of the value in cash with the RBI, making such bets costlier |
| Special dollar window for oil companies | State-run oil firms can get dollars directly, reducing heavy dollar buying in the market |
Rollovers of contracts at maturity remain allowed. The RBI said the measures aim to strengthen market discipline and keep the market orderly.
