New Delhi: The Indian rupee opened Tuesday’s session on a firmer note, climbing to 95.03 against the US dollar in early trade, a gain of 16 paise from
its previous close. The currency had opened at 95.16 at the interbank foreign exchange market before strengthening further. On Monday, the rupee had slipped 34 paise to close at 95.19, making Tuesday’s recovery a modest but welcome reversal.
According to PTI, forex traders said the dollar-rupee pair opened positively on a slight risk-off sentiment, though persistent uncertainty surrounding the West Asia conflict continued to cast a shadow over financial markets and energy prices.
Two key events in focus for markets
CR Forex Advisors MD Amit Pabari said market participants were now turning their attention to two critical domestic developments, the RBI monetary policy decision scheduled for June 5 and the ongoing trade dialogue between India and the United States. A US delegation led by Assistant Trade Representative Brendan Lynch has begun discussions with Indian officials in New Delhi this week as both sides work toward finalising a trade agreement. “Markets will closely monitor any progress on tariff-related issues and broader trade cooperation,” Pabari said, PTI reported.
Strong domestic data, equity markets and FII activity
On the macroeconomic front, India’s industrial production expanded 4.9% in April, with manufacturing output growing 6.2%. The government also met its fiscal deficit target of 4.4% of GDP for FY26, exactly matching its budget estimate, according to data released by the Controller General of Accounts. Despite the positive economic backdrop, equity markets remained under pressure, the Sensex declined 296.19 points to 73,971.30 and the Nifty dropped 103.30 points to 23,272.25 in early trade. Foreign institutional investors continued selling, offloading equities worth Rs 3,911.68 crore on Monday. Brent crude eased 0.59% to $94.42 per barrel, while the dollar index dipped marginally to 99.19.
