Rupee Gains 11 Paise To 90.84 In Early Trade As Dollar Weakens

The rupee opened stronger against the dollar on Wednesday morning. The local currency was trading at 90.8400 per dollar.

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This compared with the previous close of 90.9500 per dollar. The move reflected a gain of 11 paise in early trade.

The rupee has remained range-bound through most of February. Trading activity has been influenced by movements in the dollar and global policy developments.

Dollar Index And Global Cues

The dollar index weakened during early Asian trade. The index, which measures the dollar against six major currencies, was down 0.2% at 97.55.

The decline followed partial retracement of overnight gains in the U.S. currency. Market participants tracked developments related to U.S. trade and tariff policy.

The United States has said tariff rates for some trading partners would rise to 15% from 10%. No specific countries were named in the announcement.

The statement added to uncertainty following a recent court ruling on tariffs.

Tariff Developments In Focus

The U.S. Supreme Court recently struck down tariffs imposed under emergency powers. The ruling affected a set of reciprocal trade levies introduced earlier.

Subsequent policy statements from the U.S. administration have kept markets focused on trade-related signals.

Currency markets have responded to shifts in risk sentiment following these developments.

Central Bank Activity And Flows

Traders said the Reserve Bank of India has been active in currency markets. Intervention has been seen in both spot and forward segments.

Market participants said this activity has helped contain volatility in the rupee. The currency has held within a narrow band near the 91-per-dollar level.

At the same time, importer demand for dollars remained present. Oil companies were among the buyers amid elevated crude prices.

Brent crude was trading above $70 per barrel during the session. Higher oil prices tend to increase dollar demand from importers.

Market Conditions

Risk sentiment in domestic financial markets remained steady in early trade. Equity markets opened with mixed cues, while bond yields showed limited movement.

Currency traders continued to monitor global developments for directional signals. U.S. tariff policy and dollar movements remained key drivers for the rupee.

Recent Trend

The rupee has traded within a narrow range for most of the month. Day-to-day movements have been modest compared with earlier periods of volatility.

Market participants said trading volumes were moderate in early hours. Attention remained on global cues and official policy signals.

The rupee’s early gains reflected a combination of a softer dollar and stable domestic conditions.