After hitting multiple record lows in past sessions, Rupee staged a comeback in early trading on Thursday, gaining 61 paise to trade at 96.25 against the US dollar. The rebound came as oil prices eased, a factor that had been dragging down the domestic currency in recent sessions.According to traders cited by Reuters, rupee was expected to open in the 96.66-96.70 range after ending Wednesday at 96.82. However, despite the recovery, the currency is still under pressure and is currently witnessing a nine-session losing run. During this stretch, rupee has weakened by around 2.5 per cent and repeatedly touched fresh lows against the US dollar.So far this year, the rupee has fallen more than 5%, after already recording a 5% decline in 2025.Meanwhile, the Reserve Bank of India (RBI) on Wednesday unveiled a $5 billion dollar-rupee swap auction to infuse long-term liquidity into the banking system.The RBI said that the USD/INR Buy/Sell swap auction, scheduled for May 26, will have a three-year tenor. The central bank said the step was being taken “to meet the durable liquidity needs of the system.”Under the swap arrangement, banks will provide US dollars to the RBI and receive rupees in exchange. Once the three-year period ends, the RBI will return the dollars while banks will return the rupees.In simple terms, the mechanism is aimed at improving liquidity and ensuring better availability of funds in the banking system.The RBI has rolled out several measures in recent months to maintain sufficient liquidity conditions in the banking system.The latest announcement comes as rupee continues to face pressure from global uncertainty and persistent foreign investor outflows from Indian equity markets. Foreign investors have withdrawn billions of dollars from domestic markets amid pressure on emerging market currencies.Meanwhile, the positive mood was also visible on Dalal Street, with benchmark indices gaining 0.4%. Around 10 am, BSE Sensex was trading at 75,633.04, up 314.65 points or 0.42%. At the same time, NSE Nifty50 jumped to 23,779.80, up 120.80 points or 0.51%.
