Rupee opens higher to 90.56 after interim agreement on US-India trade deal

The rupee had rallied more than 1% last week, in the wake of the announcement of the preliminary US trade deal

The Indian rupee opened 10 paisa higher on February 9, as investor sentiment was positive, after further details of the US-India trade deal emerged over the weekend, which could in turn prompt foreign inflows into the country’s markets.

The local currency was trading at 90.56, as compared to 90.66 in the last trading session. On Friday, the Reserve Bank of India (RBI) maintained status quo in interest rates, and persisted with its “neutral” stance. However, it raised its forecasts for inflation in the fiscal year 2026 and for the first two quarters in FY27.

On Friday, India and the United States came to an interim agreement that would lower tariffs to 18% from 25%, increase imports from the U.S. and a removal of a 25% levy on India due to the country’s purchase of Russian oil. The rupee had rallied more than 1% last week, in the wake of the announcement of the preliminary US trade deal.

Local importers however, have kept the rupee from crossing above the crucial Rs 90 per dollar mark, as this is a level seen as attractive for companies to hedge positions.

Going forward, traders expect the rupee to sustain its level near the Rs 90.20 per dollar mark in the near term, with importers looking to ‘buy the dips’, possibly hedging their positions. The RBI is also likely to make an appearance.

“RBI continues to act from both sides of the market selling dollars on good upticks, thus keeping a tab on the excessive depreciation while it has also kept a tab on the appreciation after the US-India deal was announced,” analysts from Finrex Treasury Advisors said.