Mumbai: The Indian rupee gained 37 paise to trade at Rs 91.56 against the US dollar in early deals on Monday, a day after the Union Budget 2026-27 was presented. The rise came as global crude oil prices
fell sharply from recent highs, easing some pressure on the currency.
The rupee opened at Rs 91.95 in the interbank foreign exchange market and then strengthened to Rs 91.56, marking a notable recovery from its previous close. On Friday, the currency had hit a record low of 92.02 before ending a bit stronger at Rs 91.93 against the dollar.
Budget reaction and factors at play
Forex traders noted that the Budget did not give strong immediate relief but offered reassurance on the economy’s longer-term direction. The government’s plan to borrow around Rs 17.2 lakh crore in the next financial year to support a fiscal deficit projected at 4.3 per cent of GDP is likely to influence currency markets.
CR Forex Advisors’ MD Amit Pabari said that USD/INR hovering just below 92.00 makes this level an important pivot in the near term. A sustained move above this zone could open the way for the pair to test levels towards 92.20–92.50.
Global and oil price influence
The US dollar index, which measures the greenback against six major currencies, was trading modestly higher, indicating some strength in the dollar broadly. Brent crude - the global oil benchmark - was down over 4 per cent, trading near USD 66.38 a barrel in futures markets. This retreat in oil helped ease some pressure on the rupee.
Oil prices had earlier climbed towards USD 72 a barrel amid geopolitical concerns, but the recent pullback provided relief to import-dependent India.
Market context
The currency’s recovery came as Indian equity markets also saw gains on Monday, with the Sensex climbing and the Nifty trading higher after sharp falls during the Budget session on Sunday. Despite the rupee’s rise, traders remain cautious as global risk sentiment and domestic fiscal trends continue to influence market moves.
