The rupee recovered 3 paise from its all-time low stage to shut at 87.08 (provisional) in opposition to US greenback on Tuesday, because the American foreign money index retreated from its elevated stage after President Donald Trump agreed to pause tariffs on Mexico and Canada.
Foreign exchange merchants stated the US greenback index, which had surged previous 109.88 stage, retreated to 108 stage after Trump introduced the short-term pause on tariffs for 30 days.
On the interbank international alternate, the rupee opened at 86.98 and touched an intraday low of 87.13 in opposition to the American foreign money through the session.
The native unit lastly settled at 87.08 (provisional), greater by 3 paise over its earlier shut.
On Monday, the rupee plunged 49 paise to shut at an all-time low of 87.11 in opposition to the US greenback.
“We count on the rupee to commerce with adverse bias over uncertainty over US commerce tariffs. Escalation of the tariff battle by China could dent international danger sentiments whereby the US greenback could strengthen and traders would look out for protected haven. Nevertheless, any central financial institution intervention could assist the rupee,” Anuj Choudhary – Analysis Analyst at Mirae Asset Sharekhan, stated.
Traders could stay cautious forward of the Reserve Financial institution of India’s financial coverage assembly this week, Choudhary added.
The financial coverage committee (MPC) of the Reserve financial institution of India (RBI) will start its three-day assembly on February 5. The MPC will announce its coverage choices on February 7.
Trump on Monday held off on his tariff threats in opposition to Mexico and Canada for 30 days after they pledged to spice up border enforcement.
In the meantime, Finance Minister Nirmala Sitharaman on Monday stated the worth of Indian rupee is market-determined, and there was no devaluation, which is a characteristic of a hard and fast alternate charge regime.
The rupee has been falling in latest weeks, and on Monday touched an all-time intraday low of 87.29 in opposition to the American foreign money.
Finance Secretary Tuhin Kanta Pandey on Monday stated there is no such thing as a concern over the rupee worth and the Reserve Financial institution of India is managing the volatility of the native foreign money.
In the meantime, the greenback index, which gauges the dollar’s energy in opposition to a basket of six currencies, was buying and selling 0.48 per cent decrease at 108.47.
Brent crude, the worldwide oil benchmark, fell 1.18 per cent to $75.06 per barrel in futures commerce.
Within the home fairness market, the 30-share BSE Sensex closed 1,397.07 factors, or 1.81 per cent, greater at 78,583.81 factors, whereas the Nifty settled up 378.20 factors, or 1.62 per cent, at 23,739.25 factors.
Overseas institutional traders (FIIs) offloaded equities value ₹3,958.37 crore within the capital markets on a internet foundation on Monday, in line with alternate knowledge.
On the home macroeconomic entrance, India’s manufacturing sector progress began the 12 months 2025 on a powerful footing and touched a six-month excessive in January, fuelled by the steepest upturn in exports in practically 14 years, a month-to-month survey stated on Monday.
The seasonally adjusted HSBC India Manufacturing Buying Managers’ Index (PMI) rose from December’s one-year low of 56.4 to 57.7 in January supported by the quickest upturn in new export orders since February 2011.
