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The rupee appreciated 119 paise to 90.30 against the U.S. dollar in early trade on Tuesday (February 3, 2026), after U.S. tariffs on India were cut from 50% to 18%.
Forex traders said the 18% tariff changes the story, improving India’s relative position and reopening the door for FII participation.
At the interbank foreign exchange market, the rupee opened at 90.30 against the U.S. dollar, registering a gain of 119 paise over its previous close of 91.49.
“The good news overnight was the U.S.-India trade deal which was announced after a delay of almost 9 months by President Donald Trump and endorsed by PM Narendra Modi in which the trade tariffs were reduced to 18%, a tad lower than what it is for Bangladesh and Pakistan our neighbours giving our exporters a relative advantage,” said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Mr. Bhansali further noted that FIIs may finally buy Indian equities after being sellers for such a long time.
“We need to wait and see the RBI stance today and in the coming days as it needs to buy the short dollar position,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent lower at 97.43.
Brent crude, the global oil benchmark, was trading lower by 0.41% at $66.03 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 2138.08 points or 2.62% higher at 83,804.54, while the Nifty was up 607 points or 2.42% at 25,695.40.
Foreign Institutional Investors offloaded equities worth ₹1,832.46 crore on Monday (February 2, 2026), according to exchange data.
Published – February 03, 2026 10:24 am IST
