The Indian rupee opened 10 paise stronger at 90.56 against the U.S. dollar on February 9, supported by improved sentiment after additional details of an interim U.S.–India trade agreement were announced over the weekend.

The currency opened higher compared with its previous close of 90.66 on February 7, according to data from the Reserve Bank of India (RBI). The rupee had already gained more than 1% over the past week following the initial announcement of progress on the trade agreement.

Trade Deal Developments Support Sentiment

On February 7, India and the United States reached an interim understanding that reduces average tariffs to 18% from 25%, according to official statements from both governments. The deal also says that India can buy more goods from the U.S. and that the 25% tax on India's purchases of Russian oil will be removed.

The easing of tariff-related measures made people feel better about the domestic financial markets, which helped the rupee at the start of the trading session. The rupee traded in a small range in the early hours, according to market data, as traders thought about what the interim deal would mean.

RBI Policy Decision In Focus

The rupee’s movement also followed the RBI’s monetary policy decision on February 7, when the central bank kept the policy repo rate unchanged and maintained its “neutral” stance. The RBI, however, revised its inflation projections upward for the financial year 2026 and the first two quarters of FY27, according to the official policy statement.

The central bank reiterated its commitment to maintaining orderly conditions in the foreign exchange market, the RBI said in its post-policy communication.

Importer Demand Limits Upside

Despite the higher opening, importer demand for dollars continued to cap gains near the ₹90 per dollar level. Market participants typically view this level as attractive for hedging import-related exposures, according to data from authorised dealer banks.

The RBI has been active in the foreign exchange market in recent sessions. Finrex Treasury Advisors said in a market note that the central bank has been selling dollars during sharp rupee upticks and monitoring appreciation following the U.S.–India trade announcement, citing observed market activity.

The rupee’s opening on February 9 reflects a continuation of gains recorded last week, driven by trade-related developments and policy cues, while demand from importers and central bank activity kept movements orderly during early trading hours.