Rupee Slips as RBI Eases Rules; USD/INR Near 93.50

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: April 21, 2026

Key Moments

USD/INR advances toward 93.50 as the Rupee extends its prior session’s decline.
RBI removes restrictions on state-run banks’ access to NDFs and on rebooking of FX derivative contracts.
Traders watch Kevin Warsh’s Fed confirmation hearing and March US Retail Sales for further market cues.

Rupee Weakens After RBI Rolls Back Forex Market Curbs

The Indian Rupee extended its previous session’s slide against the US Dollar on Tuesday, with USD/INR moving higher toward the 93.50 area. The domestic currency faced renewed selling pressure after the Reserve Bank of India withdrew certain measures that had been aimed at curbing strong one-way moves against the Rupee.

Late on Monday, the central bank removed restrictions on state-owned banks that had limited their ability to offer non-deliverable forwards (NDFs) to both resident and non-resident clients, according to Reuters. The RBI also scrapped constraints that had prevented market participants from rebooking foreign exchange derivative contracts.

Geopolitical Developments: US-Iran Ceasefire Talks Back on the Table

Risk sentiment in financial markets has improved as Iran agreed to return to discussions with the United States on a permanent ceasefire. A report from The Wall Street Journal indicated that Iran informed regional mediators it would dispatch a negotiating delegation to Islamabad on Tuesday for a second round of talks with the US. The report noted that Tehran had not yet issued an official confirmation.

Washington, however, has already signaled its stance, with confirmation that US Vice President JD Vance is traveling to Islamabad and will head the American negotiating team. The talks with Tehran are expected to take place on either Tuesday night or Wednesday morning.

This came after sentiment had turned cautious on Monday when Iran declined to sit down again with the US, accusing it of breaching ceasefire arrangements. Iran’s foreign ministry spokesperson Esmail Baghaei said that there is “no plan for a second round of negotiations with the US for now.”

Foreign Investors Stay Net Sellers in Indian Equities

Despite stronger global markets reflecting optimism that the US and Iran could move toward a lasting ceasefire, foreign investor interest in Indian equities has remained subdued.

On Monday, Foreign Institutional Investors were net sellers in the Indian stock market, following a modest pickup in holdings during the April 15-17 window. FIIs offloaded shares worth Rs. 1,059.53 crore on the first trading day of the week. Over the final three sessions of the previous week, they had been net buyers, accumulating Rs. 1,731.71 crore in total, or Rs. 577.24 crore on average per session.

Period	FII Activity	Amount (Rs. crore)	Notes
Last 3 trading days of previous week	Net buying	1,731.71	Average Rs. 577.24 crore per day
Monday (first trading day of week)	Net selling	1,059.53	Reversal from prior net buying streak

Macro Focus: Warsh Hearing and US Retail Sales in View

During Tuesday’s trading, attention is centered on the confirmation hearing of US President Donald Trump’s nominee Kevin Warsh for the role of Federal Reserve chairman, as well as the release of US Retail Sales data for March at 12:30 GMT.

Retail Sales, a key barometer of consumer spending, are projected to have increased 1.4% on a monthly basis, compared with a 0.6% gain in February. Market participants are expected to scrutinize the data for signals on household demand and broader economic momentum.

Technical Picture: USD/INR Maintains Recovery Bias Near 93.50

At the time of reporting, USD/INR is trading higher around 93.50. The short-term outlook has turned more constructive as the pair has moved back above its 20-day Exponential Moving Average, currently located at 93.08.

The 14-period Relative Strength Index is fluctuating within the 40.00-60.00 band, which is consistent with a sideways market profile.

On the upside, sustained trading above the 20-day EMA could open the door for a continued recovery toward the 94.00 level. On the downside, failure to hold above this moving average may see the pair slip back toward the March 3 high at 92.46.

(The technical analysis of this story was written with the help of an AI tool.)