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Rupee logs biggest gain in 6 months after RBI measures to support currency
Oct-12-2026

Indian rupee has logged its steepest single-day gains in more than six months against US dollar on Monday, after the Reserve Bank of India stepped in with several measures to contain volatility in the currency exchange market. The Reserve Bank announced several measures, including a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions, to reduce dollar demand in the spot market and curb speculative positions. Traders overlooked data showing that retail inflation, measured by the All India Consumer Price Index (CPI) with the base year 2024, rose to 5.54% (Provisional) in September 2026 from 4.83% (Final) for August 2026, amid persistently high food prices. The CPI reading remained above the Reserve Bank of India’s (RBI's) medium-term inflation target of 4%. On the global front, Sterling traded slightly higher on Monday while the euro slipped, as expectations of further Federal Reserve tightening and geopolitical tension kept the dollar well supported. 

Finally, the rupee ended at 95.78 (Provisional), strengthened by 93 paise from its previous close of 96.71 on Friday. The currency touched a high and low of 95.96 and 95.57 respectively.  


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