While traders and analysts say that the trade breakthrough has lifted the pall over the rupee, a sustainable rally would depend on a bounceback in foreign portfolio inflows
The Indian currency was trading lower on February 4, with traders staying on the sidelines ahead of the MPC review
Despite the rupee weakening against the dollar, Indians can still travel abroad in 2026. Here are 5 affordable international destinations offering great value despite currency volatility.
The rupee gained a percent in the previous session following the India-US trade deal announcement, the euphoria now seems to be fizzled out
The India–US trade deal has taken pressure off the currency. The real question is whether flows and fundamentals can do the rest.
The local currency traded higher on February 3, after a late-night US trade deal spurred investor optimism
One-month USD/INR non-deliverable forwards fell as much as 0.4 percent to 90.28, extending an overnight decline of about 1.3 percent
Finance Minister Nirmala Sitharaman said that the country’s macroeconomic fundamentals remain strong and the banks are closely monitoring the situation.
Budget measures to enhance FPI inflows, RBI selling US dollar seen propping up the rupee
India and the United States have concluded six rounds of talks for a trade deal so far.
Nageswaran said that further reforms to reduce operating costs, lower input costs, deregulation and skill creation can lift India's medium-term growth higher than the estimated 7 percent.
The currency has declined 2% on the year so far and nearly 5% since US President Donald Trump imposed steep tariffs on India's merchandise exports to its largest market
The domestic currency has weakened by 202 paise, or over 2 percent, so far this month. In 2025, it had declined 5 percent amid sustained foreign fund outflows and a strong US dollar
The rupee has fallen more than 2% in January, adding to its 5% slide in 2025
Bilateral trade between India and Myanmar reached $2.15 billion during 2024–25.
A holiday should give you stories and rest, not EMIs and credit card anxiety waiting when you get back.
Risk aversion linked to the Greenland dispute added downside pressure on the currency
Malhotra said the currency should not be viewed as the sole indicator of economic strength.
The issue is expected to take the centre stage when India and the Russia-led Eurasian Economic Union hold the next round of trade talks, likely in the second half of February
Bids for the operation will be submitted by banks in the first half of Tuesday, with the premium quoted in paisa terms, and the results will be declared later in the day
A source added that these efforts come amid a push to boost exports to Russia to balance the trade, with a focus on spurring Indian shipments of automobiles, auto components, and pharmaceuticals.
Forex traders said foreign portfolio investors continue to offload Indian equities, which has been weighing on the Indian rupee in the last few months.
Major research and brokerage houses expect the rupee to exit its current depreciating phase in 2026, but much will depend on the progress of the trade deal between India and its largest trading partner, the US.
The rupee has depreciated by roughly 5.22 percent against the US dollar this year, making it Asia’s worst-performing currency in 2025
In the last three days, Indian rupee has appreciated 1.04 percent against the US dollar, according to the Bloomberg data.