Rupee Opens Higher at 91.73 on February 02 After Budget Measures Lift Sentiment

The Indian rupee opened higher at 91.73 per U.S. dollar on February 02, as it strengthened from its previous close of 91.98, due to improved investor sentiments a day after the Union Budget 2026 was announced, as per market information.

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The rupee opened higher due to positive sentiments created by the Budget announcements on foreign investments and reported intervention by the Reserve Bank of India (RBI) after the recent weakness in the Indian rupee.

Budget Statements Fuel Early Optimism

Finance Minister Nirmala Sitharaman, while making the announcement for the Union Budget on February 01, said that persons outside the country would be permitted to invest in Indian equities under the portfolio investment scheme with higher limits.

The above development is expected to encourage foreign investors to allocate a higher percentage of their portfolios to Indian companies. The announcement comes at a time when foreign portfolio investor (FPI) inflows have moderated in recent months, and the change is expected to improve sentiment towards Indian financial markets.

The Budget announcement was cited as one of the factors that contributed to the rupee’s higher opening in early trade on February 02.

RBI Dollar Selling Supports the Rupee

The Reserve Bank of India was selling dollars after the rupee touched multiple record lows in previous trading sessions. The reported intervention helped provide near-term support to the local currency during early trade.
Money markets were closed on Sunday due to a special trading session, limiting domestic participation ahead of Monday’s opening.

Recent Rupee Performance

Despite the higher opening on February 02, the rupee has been under pressure in recent weeks. The local currency has declined by more than 2% over the past month, according to market data.

The rupee touched an all-time low of 91.9875 per U.S. dollar during the recent sell-off, highlighting sustained pressure from global and domestic factors

International Events Contribute to Volatility

Internationally, the U.S. dollar strengthened on Friday after U.S. President Donald Trump announced the nomination of Kevin Warsh as the new Federal Reserve Chair.

Warsh has been perceived as a hawk on interest rates, which has been helping the dollar and putting pressure on emerging market currencies, including the rupee.