On Thursday, the Indian rupee saw its largest single-day increase in over 12 years, closing at ₹93.10 per dollar, marking a 1.8% rise. This recovery followed the Reserve Bank of India's (RBI) recent interventions aimed at curbing speculative trading in the foreign exchange market. The rupee had previously hit a record low of ₹95.21 before the RBI's measures took effect. The central bank restricted banks' onshore currency positions to $100 million, effective by April 10, and prohibited certain non-deliverable contracts involving the rupee. These actions are a response to the rupee's 3.48% depreciation against the dollar this year, largely attributed to geopolitical tensions stemming from the Iran conflict. Market participants observed increased demand for forward contracts, driving up premiums as banks adjusted their positions. The RBI's decisive actions reflect its commitment to stabilizing the rupee amid ongoing volatility in the foreign exchange market.