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The Indian rupee staged recovery in early trade on Thursday, March 5, 2026, rebounding from its all-time low. After a period of intense volatility driven by geopolitical tensions, the currency gained approximately 50–60 paise, trading at ₹91.57 against the US dollar.

The rupee traded at ₹91.57 per US dollar in early trade, recovering nearly 60 paise from its recent record low. The currency had settled at ₹92.05 in the previous session on March 4, after touching an all-time low of ₹92.17 during heightened market stress.

Meanwhile, the US Dollar Index (DXY) hovered near 98.72, while the global oil benchmark Brent Crude traded around $83.61 per barrel, reflecting the continued geopolitical risk premium in energy markets.

RBI Intervention Seen as Key Support

Market participants reported heavy dollar selling by the RBI before the local spot market opened. The intervention was widely seen as a strategic move to prevent further sharp depreciation after the rupee weakened nearly 1% over the previous five trading sessions.

Currency traders said the central bank’s presence in both domestic and offshore markets helped calm speculation against the rupee and restore confidence in the currency.

Global Sentiment Offers Some Relief

While geopolitical risks remain elevated, global currency markets showed tentative signs of stabilisation. A mild cooling in the US dollar index and some easing in risk aversion provided emerging market currencies, including the rupee, with temporary breathing space.

However, analysts cautioned that the overall sentiment remains fragile amid ongoing uncertainty in global energy markets.

The rupee’s recovery was also supported by a positive opening in domestic equities. The BSE Sensex climbed more than 500 points in early trade, signalling improved risk appetite among domestic investors.

The rebound helped offset recent selling pressure from foreign investors, who had pulled out over ₹1,787 crore from Indian equities in the previous sessions.

With Brent crude prices rising nearly 10% over the past week due to the Middle East conflict, the country’s trade deficit and inflation risks remain key concerns for currency markets.