Daijiworld Media Network - Mumbai

Mumbai, Apr 17: The Indian rupee strengthened to a one-week high on Friday, supported by measures taken by the Reserve Bank of India (RBI) to limit the impact of dollar buying by state-run oil refiners.

The currency rose 0.5 per cent to 92.7250 against the US dollar by 10:50 am, marking its strongest level since April 10.

Traders said the movement followed a Reuters report indicating that the RBI had urged state-run refiners to utilise a special credit line for their foreign exchange needs instead of purchasing dollars in the spot market. The step is seen as part of a broader strategy to stabilise the rupee amid ongoing pressures.

The currency has been under strain due to elevated global energy prices and weak capital inflows. In response, the RBI has deployed a range of regulatory measures, including caps on banks’ net open foreign exchange positions and restrictions on non-deliverable forwards (NDFs), along with the new facility for refiners.

Market experts noted that these actions reflect the central bank’s intent to defend the rupee in a challenging global environment. The currency has recovered around 2.5 per cent from its record low recorded in late March, aided by these interventions.

Meanwhile, global developments continue to influence market sentiment. Investors are closely tracking geopolitical tensions in the Middle East, including developments involving Iran, as well as signals from US President Donald Trump regarding possible talks over the weekend.