Athira Sethu
Kochi, 3 Feb 2026
The Indian rupee registered a gain of 122 paise to settle at 90.27 per dollar, making it one of the best performing currencies against dollar on Tuesday.
India and the US reached a trade deal on Monday, February 1, under which the US will reduce the mutual tariff on Indian products to 18% from the existing 25%. This was announced after a telephonic conversation between US President Donald Trump and Prime Minister Narendra Modi.
Union Minister Ashwini Vaishnaw said that the trade agreement between India and the US is a win-win situation for both countries. He said that the trade agreement will result in a bright future for both countries.
The government and Reserve Bank of India (RBI) announced that they are keeping a close watch on the rupee, which had fallen below the ₹90 level against the US dollar. Economic Affairs Secretary Anuradha Thakur said that the government might do something if the situation becomes more uncomfortable. She said that a lower rupee value could be beneficial for the country as it would increase the competitiveness of its exports.
The rupee rose by 42 paise to close at ₹91.51 against the US dollar on Monday, a day after the Union Budget for 2026-27 was announced. The rupee also got support from the fall in crude oil prices. Forex experts said that the RBI seemed to be actively supporting the ₹92 per dollar level. On Friday, the rupee had touched a record low of ₹92.02 but finished 6 paise higher at ₹91.93 against the US dollar.
