The rupee surged 48 paise to close at 94.43 (provisional) against the U.S. dollar on Wednesday (October 21, 2026), supported by foreign currency inflows linked to Reliance Industries’ Jio Platforms IPO and RBI intervention to contain dollar demand.

However, forex trade analysts said weak domestic markets and higher crude oil prices were putting pressure on the rupee.

At the interbank foreign exchange market, the rupee opened at 94.78 against the dollar. In intraday trade, it touched a high of 94.41 and a low of 94.82 against the American unit. It eventually settled at 94.43 (provisional) against the greenback, up 48 paise from its previous close.

The Indian currency earlier recorded a similar closing level on September 4.

On Monday (October 19), the rupee settled lower by 2 paise at 94.91 against the U.S. dollar. Forex markets were closed on Tuesday (October 20) on account of Dussehra.

“The rupee rose to a six-week high on IPO-driven foreign inflows and a relatively weak U.S. dollar. However, weak domestic markets and elevated crude oil prices capped sharp gains,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.

He further said that the rupee is expected to trade with a positive bias on overall weakness in the dollar and softening of U.S. Treasury yields. “USD-INR spot price is expected to trade in a range of ₹94.20 to ₹94.80.”

According to analysts, a stronger rupee can ease imported inflation and reduce currency-related costs for companies importing crude, electronics and other raw materials. It may also benefit sectors such as aviation and oil marketing, although the actual impact depends on their hedging positions and pricing.

“Foreign investors participating in large IPOs typically sell dollars to acquire rupees, increasing dollar supply in the domestic foreign exchange market. The RBI has also supported the currency through measures aimed at reducing spot-market dollar demand from oil companies and managing excessive exchange-rate volatility,” said Gaurav Garg, Head of Research at brokerage platform Lemonn.

However, the recovery faces significant challenges as Brent crude prices climbed above ₹110 per barrel amid renewed tensions in West Asia and concerns over potential supply disruptions, he added.

Going forward, the sustainability of the rupee’s recovery will depend on the continuation of IPO-related inflows, RBI intervention, crude oil prices, foreign portfolio flows and U.S. dollar movements, Garg said.

The ₹30,213-crore public offer of Jio Platforms opened for subscription on Wednesday (October 21). The IPO will close on October 23.

The issue, with a price band of ₹1,065 to ₹1,119 per share, was fully subscribed within 100 minutes of opening, making it the fastest-ever subscribed IPO.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.07% at 101.59.

Brent crude, the global oil benchmark, was trading up by 1.99% at $110.96 per barrel in futures trade.

On the domestic equity market front, the Sensex declined 143.21 points to settle at 73,709.69, while Nifty dropped by 77.60 points to end at 22,811.35.

Foreign Institutional Investors (FIIs) sold equities worth ₹1,148.64 crore on a net basis on Monday (October 19), according to exchange data.