Rupee gains 11 paise to 90.84 in early trade on softer dollar

Indian Rupee

Rupee rose 11 paise today, February 26, as the dollar gave some of its overnight gains, while investors awaited more cues on the changes to the US tariff structure, to make fresh bets on the rupee.

The local currency was trading at 90.8400 to the dollar, as compared with Rs 90.9500 per dollar. The rupee has been moving in a narrow range throughout the month.

The Reserve Bank of India (RBI) has likely ensured that the currency does not fall below the Rs 91 per dollar mark by selling the greenback both in the spot and the forwards markets, according to traders. On the other hand, importers, especially oil companies, have likely bought the dollar to build their coffers, given high Brent crude prices, with oil staying above $70 per barrel.

“A risk-on sentiment in the markets and RBI selling near Rs 91.00 levels has ensured that the rupee is unable to cross Rs 91.00 levels,” analysts at Finrex Treasury Advisors said.

The United States said that the tariff rate for some trading partners will rise to 15 percent from the previously imposed 10 percent, without naming any specific countries or giving further details. This has further sown confusion following the US Supreme Court's ruling striking down President Donald Trump’s tariffs.

The dollar index - which measures the strength of the greenback against six rivals - was at 97.55, falling 0.2 percent.