On February 2, the day following the presentation of the Union Budget 2026, the Indian rupee opened higher as investor sentiment improved due to announcements concerning international institutional and portfolio investors.
On February 1, The Finance Minister declared that the Portfolio Investment Scheme now allows non-Indian citizens to invest in stocks with increased quotas. This could enable foreign investors to deploy more of their portfolios to Indian companies, and further improve foreign portfolio investors (FPI) inflows, which have cooled in the previous months.
Additionally, traders said that the Reserve Bank of India was selling the US dollar after the rupee had hit many lows during earlier trading sessions.
The local currency was trading at 91.7300 per dollar, as opposed to 91.9800 at closure on Friday. During Sunday’s special trading session, money markets were closed. Last month, the rupee dropped more than 2%, reaching a record low of 91.9875.
However, following the U.S. President’s announcement of the choice of new Federal Reserve Chair Kevin Warsh, who has been viewed by market participants as more hawkish, the US dollar appreciated on Friday.
