The rupee strengthened by 37 paise to 91.56 against the US dollar in early trade on Monday, a day after the Union Budget 2026-27 was presented, supported mainly by a sharp decline in crude oil prices.
Forex traders said the Budget provided reassurance rather than relief for the currency, while the government’s sizeable borrowing programme could weigh on investor sentiment. The Centre is expected to borrow Rs 17.2 lakh crore in the next financial year to finance its fiscal deficit, pegged at 4.3 per cent of GDP.
At the interbank foreign exchange market, the rupee opened at 91.95 against the US dollar and later strengthened to 91.56, marking a 37-paise gain from its previous close. On Friday, the local currency had slipped to a record low of 92.02 before settling 6 paise higher at 91.93.
“Union Budget 2026 did not arrive with fireworks. Instead, it stayed firmly on the path of continuity — focusing on growth, stability, and fiscal discipline. Short-term pressure may persist, but the broader message of fiscal credibility and growth continuity keeps medium-term prospects constructive,” CR Forex Advisors MD Amit Pabari said.
Pabari added, “with USD/INR hovering just below 92.00, this level now stands as the key near-term pivot. A sustained break above it could open the path toward 92.20-92.50.”
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.10 per cent higher at 97.08.
Brent crude, the global oil benchmark, fell 4.24 per cent to $66.38 per barrel in futures trade, as the US and Iran held talks aimed at avoiding American strikes on Iranian soil. Oil prices had earlier climbed to around $72 per barrel amid fears of a US strike over the weekend.
On the domestic equity front, the Sensex rose 302 points to 81,024.94, while the Nifty advanced 59.25 points to 24,884.70.
Equity markets had reacted negatively to the Union Budget on Sunday, with higher securities transaction tax on derivatives and changes to buyback taxation increasing costs and dampening sentiment. Foreign institutional investors sold equities worth Rs 588.34 crore on Sunday, according to exchange data.
(With PTI Inputs)
