Rupee Opens Higher at 91.73: Budget Optimism Lifts Sentiment, RBI Presence in Focus

Market Performance: Rupee Opens Higher at 91.73 After Budget Signals

The rupee opens higher at 91.73 per dollar on February 2, setting a calmer tone after days of pressure. The move comes a day after the Union Budget 2026, which shifted mood across currency desks.

On Friday, the rupee had closed at 91.98. Sunday’s opening showed early strength, even as trading volumes stayed thin due to the special trading session and closed money markets.

This opening matters. The currency had lost over 2% last month and recently touched an all-time low of 91.9875. Against that backdrop, the higher start reflects a pause—if not a full turnaround.

Main News: Budget-Linked Sentiment Drives Early Strength

The key trigger is sentiment coming out of the Budget.

The government announced that individuals living outside India can now invest in Indian equities through the Portfolio Investment Scheme (PIS), with higher investment caps. This change directly links to foreign participation in Indian markets.

Why it matters for the rupee:

• Wider access for overseas individuals to invest in Indian equities
• Higher caps under the Portfolio Investment Scheme
• Potential support for foreign portfolio investor (FPI) flows, which had moderated in recent months

These signals helped steady nerves after the rupee’s recent slide.

RBI Activity: Dollar Selling Seen Near Key Levels

Alongside budget-driven sentiment, the market also watched the Reserve Bank of India closely.

After the rupee hit multiple lows in recent sessions, traders indicated that the RBI was active in selling dollars. The intent appeared clear—prevent sharp weakness and manage volatility near the 92 per dollar zone.

This combination of policy signaling and central bank presence helped the rupee open firmer, even as global cues stayed mixed.

Global Cue: Dollar Strength Still in the Background

Globally, the US dollar strengthened on Friday. The move followed an announcement by US President Donald Trump on appointing Kevin Warsh as the new Federal Reserve Chair.

This development added a hawkish undertone to global currency markets. Despite that, the rupee managed to open higher—highlighting how strong local cues outweighed external pressure at the start of the session.

Key Levels and Recent Context

To put the move in perspective:

• Opening level (Feb 2): 91.73 per dollar
• Previous close (Friday): 91.98 per dollar
• Recent all-time low: 91.9875
• Monthly move: More than 2% loss in the previous month

The rupee opens higher at 91.73, but remains close to historic lows, keeping traders cautious.

What the Market Is Watching Next?

With the Budget now behind, attention turns to domestic policy events.

The next major marker is the Monetary Policy Committee (MPC) meeting on Friday. While no assumptions are built in, currency markets typically reassess positioning ahead of policy outcomes.

For now, the rupee’s higher opening reflects relief, not euphoria.

Summary: Rupee Opens Higher at 91.73, Stability Takes Center Stage

• The rupee opens higher at 91.73 per dollar after closing at 91.98
• Union Budget 2026 announcements lifted sentiment, especially on overseas equity participation
• RBI’s presence near recent lows helped steady the currency
• The rupee had lost over 2% last month and hit a record low of 91.9875
• Global dollar strength remains, but local cues dominated early trade

In short, the rupee opens higher at 91.73, supported by budget-led confidence and central bank activity. The move offers breathing space, even as the broader currency story remains closely watched.

Source: Moneycontrol