Indian Rupee Edges Up on RBI Intervention

2026-02-02 04:57 By Erika Ordonez 1 min. read

The Indian rupee rose to around 91.6 per dollar on Monday, extending gains from the previous session, after early pre-market intervention by the Reserve Bank of India.

Traders said state-run banks offered dollars to support the rupee amid ongoing market stress.

The currency remains under pressure from broad risk-off sentiment and a strong US dollar, compounded by persistent foreign outflows of more than $22.9 billion from Indian equities since 2025.

Local equities, which were open for a special budget session on Sunday, posted their steepest budget-day decline in six years, highlighting domestic risk aversion.

In addition, the federal budget’s record borrowing of 17.2 trillion rupees and higher taxes on equity derivatives reinforced investor caution, while modest revenue growth and the lack of bold reforms limited immediate market confidence.

Looking ahead, market participants await potential RBI measures at the Feb. 6 monetary policy meeting and upcoming PMI data.



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