New Delhi, September 3, 2026: The Indian rupee strengthened sharply against the U.S. dollar on Thursday, reaching a two-month high of around ₹94.30 per dollar.
The latest rise comes after India attracted a much larger-than-expected $136.4 billion through special foreign-currency mobilisation measures. According to the Reserve Bank of India (RBI), a large portion of these inflows came through deposits from non-resident Indians.
The strong foreign-currency inflows are expected to further strengthen India’s foreign exchange reserves and give the RBI greater flexibility to manage volatility in the rupee.
India’s foreign exchange reserves had already reached a record level of around $729.3 billion. The stronger reserve position provides an additional cushion against external pressures, including fluctuations in crude oil prices and changes in global interest rates.
The rupee opened at around ₹94.30 per dollar on Thursday, compared with ₹94.97 at the previous session’s close. The currency has gained more than 1% this week, making it one of the better-performing Asian currencies.
However, analysts continue to watch global risks closely. Rising crude oil prices, expectations surrounding U.S. interest rates and geopolitical tensions could influence the rupee’s movement in the coming days.
The RBI’s recent actions in the foreign exchange market, combined with stronger foreign-currency inflows, could help limit excessive volatility and provide support to the Indian currency.
