Overview
- The rupee closed at 90.56 on Tuesday, recovering from an intraday low of 90.77 and trading within a 90.48–90.77 range after a volatile session.
- India and the US announced an interim trade framework with reciprocal tariff reductions, and a joint statement noted India’s intention to purchase about $500 billion of US goods over five years.
- Dealers and analysts reported the Reserve Bank of India actively managing moves, including dollar purchases near 90.05 to curb rapid appreciation following the announcement.
- Foreign institutional investors were net buyers of Indian equities on Monday at Rs 2,254.64 crore, with flows improving this month even as analysts question their durability and flag oversight provisions tied to Russian energy.
- India’s foreign exchange reserves climbed to a record $723.774 billion in the week ended January 30, providing a buffer as traders expect near-term, range-bound USD/INR moves.