Rupee Gains Against Dollar: RBI Intervention, Budget Cues, and Global Dollar Trends Shape the Currency’s Next Move
The Indian rupee staged a smart comeback on February 2, climbing over 40 paise against the US dollar after what traders believe was a timely RBI intervention. The central bank intervened when the currency appeared unstable to restore economic stability. The current situation will determine whether this marks the beginning of a permanent recovery or serves as a temporary pause after recent market fluctuations. The rupee’s upcoming movement requires close observation, as three factors, budget signals, global dollar strength, and RBI actions, are currently at play.
Stock Market Reopens After Budget Weekend
The forex market resumed operations after a two-day holiday break, with traders closely analysing the Union Budget presented on February 1. The government’s announcement on borrowing requirements quickly reached currency desks, raising questions about growth while also putting pressure on the Indian rupee.
Returning traders remained cautious, watching how government spending, policy direction, and market reactions would unfold. The Budget weekend may be over, but its impact is only beginning to ripple through the forex market.
Higher Borrowing, Stable Deficit: What the Government’s Fiscal Math Signals
- Gross Borrowing (FY27): ₹17.2 lakh crore, about 17% higher than the current fiscal year’s ₹14.61 lakh crore.
- Fiscal Deficit Target: Pegged at 4.3% of GDP.
- Debt-to-GDP Ratio: Expected to ease to 55.6%, supporting fiscal credibility and policy discipline.
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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