The rupee appreciated 47 paise to close at 92.59 (provisional) against the U.S. dollar on Wednesday, April 8, 2026, driven by two key developments: U.S. President Donald Trump’s announcement of a two-week suspension of military strikes against Iran and the Reserve Bank of India’s (RBI) decision to keep its key benchmark rate unchanged.
Forex traders said investor sentiment got a boost after RBI Governor Sanjay Malhotra assured that the steps taken on forex do not constitute a structural change.
Key Drivers of the Rupee’s Surge
| Driver | Details |
|---|---|
| Iran-US Ceasefire | President Trump announced suspension of military strikes against Iran for two weeks |
| RBI Policy Decision | MPC voted unanimously to keep repo rate unchanged at 5.25% with a neutral stance |
| RBI Governor’s Assurance | Steps taken on forex do not constitute a structural change |
The Rupee Movement
- Gain: 47 paise
- Closing Rate: 92.59 per USD (provisional)
- Previous Close: Not specified, but the surge indicates significant appreciation
The RBI’s Monetary Policy Decision
The central bank’s six-member Monetary Policy Committee (MPC) voted unanimously to keep the benchmark repurchase rate at 5.25% , flagging heightened uncertainty after the West Asia conflict drove crude prices sharply higher.
The decision to maintain a neutral stance signals the RBI’s cautious approach amid global volatility.
Market Sentiment
Forex traders noted that the combination of geopolitical easing (ceasefire announcement) and policy stability (unchanged repo rate) boosted investor sentiment. Governor Malhotra’s assurance on forex measures further calmed market nerves.
