Overview
- The currency recouped part of Wednesday’s dip to close at 90.33 per dollar on Thursday, after swinging in a tight 90.3–90.5 range this week.
- President Donald Trump’s move to cut tariffs on Indian goods to 18% from 50% sparked the rupee’s biggest one‑day gain in seven years on Feb 3, taking it to about 90.27.
- Traders report caution because neither side has released the final trade text, with corporate and importer dollar demand tempering gains as hedging picked up.
- Foreign portfolio investors turned buyers, with exchanges showing Rs 5,236 crore of equity purchases on Tuesday and a modest Rs 29.79 crore on Wednesday.
- Analysts are split on the outlook, with some projecting a move toward 88–89 and others calling for a return toward the low‑90s or 94, while several expect the RBI may rebuild reserves by buying dollars given a $62.4 billion short forwards position and record $709 billion in reserves.