The Indian rupee climbed to its strongest level in six weeks on October 21, supported by foreign investment inflows linked to the Jio Platforms initial public offering (IPO) and recent measures introduced by the Reserve Bank of India (RBI).

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The currency touched ₹94.4925 against the US dollar before easing slightly to ₹94.56, marking a gain of around 0.4% during the day. The recovery follows a difficult period earlier in October, when the rupee faced pressure near record-low levels.

The currency has gained more than 2% from its recent lows. Measures introduced by the RBI helped support the rebound, including steps aimed at shifting oil-related dollar demand away from the spot market and increasing the cost of certain hedging arrangements used by importers.

The central bank’s market interventions, combined with foreign investment inflows, have also helped strengthen the rupee. Market participants said the next important support level for the dollar-rupee exchange rate could be around ₹94.30.

However, the recovery remains vulnerable to external pressures. Elevated crude oil prices are a major concern for India, which imports a large share of its energy requirements. More expensive oil can increase demand for US dollars, raise import costs and put renewed pressure on the domestic currency.

The rupee’s recent gains offer some relief after its earlier weakness, but traders remain cautious about whether the recovery can continue. Future movements will depend on foreign capital flows, RBI actions, global oil prices and broader demand for the US dollar.