Rupee opens 16 paise lower at 90.43 against dollar on likely importer buying, RBI meet in focus

The rupee closed at 90.27 on February 3, jumping more than a percent in its biggest intraday rise since December 2018.

The rupee opened almost 16 paise lower against the dollar on February 4, snapping a rally fuelled by the India-US trade deal announcement, as importers rushed to buy the American currency below the psychologically significant Rs 90 level.

The currency was trading at 90.43 to the dollar after ending the previous session at 90.27, when the rupee jump more than a percent in its biggest intraday rise since December 2018.

US President Donald Trump on February 2 announced a trade deal with India, including a significant reduction in reciprocal tariffs on Indian goods, lowering the rate from 25 percent to 18 percent, following a phone conversation with Prime Minister Narendra Modi.

The rally was likely snapped as importers rushed to buy the dollar at the psychological Rs 90 mark, a level seen as attractive for companies to hedge positions.

Market participants will now look towards the first monetary policy committee (MPC) decision of 2026 on February 6. The Reserve Bank of India (RBI) is expected to keep rates steady, with focus on liquidity infusion measures to anchor money market yields.

“We may see a range of 89 to 92 on the dollar/rupee in the coming days and advise exporters to now increase their hedges to 30-40 percent. We keep a close watch on RBIs actions in the overall scheme of things,” analysts at Finrex Treasury Advisors said.