Rupee rises to 90.40 as markets await RBI policy and India-US deal
Rupee rises to 90.40 as markets await RBI policy and India-US deal
Rupee edges up to 90.40 per dollar in early trade as investors await RBI policy cues and any sign of a formal India-US trade agreement.
The rupee rose 7 paise to 90.40 against the U.S. dollar in early trade on Thursday, after opening at 90.52 and touching a session high of 90.40 as traders weighed dollar demand against incoming cues. It later settled around 90.43, signaling a narrow range as participants stay cautious amid unsettled trade deal talks and ahead of the RBI policy decision. A firmer dollar index was noted, with the greenback up 0.18% to 97.79, while Brent crude slid about 2% to around $68.07 per barrel, adding another layer of complexity to the currency market. The 89.80–90.00 zone has emerged as a strong support base, providing dampening support to the rupee’s latest move, according to market observers.
Analysts say the market has shifted from celebration to verification as there is no signed India-US trade deal or official framework text released yet. Traders are now waiting for finer details before the rupee can extend its rally, and attention is turning to Friday’s RBI Monetary Policy Committee meeting. The consensus among traders is that the central bank is likely to keep rates unchanged, with a broad view that rate cuts remain unlikely at least through the end of 2026.
In this context, traders are balancing multiple variables—firming dollar strength, oil price volatility, and the absence of the final trade deal terms—while positioning for guidance from the RBI and any updates on the India-US agreement. The overall tone is cautious, with a view that clarity from official documents could swing the next leg for the rupee.
