Rupee opens higher at 91.73 on post-budget optimism, likely RBI selling

The local currency was trading at 91.7300 per dollar, as compared to 91.9800 at close on Friday

The Indian rupee opened  higher on February 2, a day after the Union Budget 2026 was presented, as investor sentiment turned positive, with announcements pertaining to foreign institutional and portfolio investors.

Finance minister Nirmala Sitharaman announced on February 1, that individuals living out of India can now invest in equities through the Portfolio Investment Scheme, with higher caps in place. This could enable foreign investors to allocate more of their portfolios to Indian companies, and further enhance foreign portfolio investors (FPI) inflows, which have moderated in the recent months.

“For the rupee, the budget offered reassurance, not relief. Short-term pressure may persist, but the broader message of fiscal credibility and growth continuity keeps medium-term prospects constructive,” Amit Pabari, MD, CR Forex Advisors said.

Additionally, the Reserve Bank of India was said to be selling the greenback, after the rupee had hit multiple lows in the previous trading sessions, according to traders.

The local currency was trading at 91.7300 per dollar, as compared to 91.9800 at close on Friday. Money markets were closed during the special trading session on Sunday. The rupee has lost more than 2% last month, touching an all-time low of 91.9875.

“Exporters may wait for near to 92 levels to sell as RBI ensures that rupee does not cross 92 for the moment,” analysts at Finrex Treasury Advisors said in a research note.

On the other hand, the US dollar strengthened on Friday, after President Donald Trump announced the appointment of new Federal Reserve Chair Kevin Warsh, who has been perceived as more hawkish by market participants.

With the budget out of the way, market participants will now look forward to the monetary policy committee (MPC) meeting on Friday, where it is expected that the RBI will keep rates steady, according to a previous Moneycontrol poll.