Rupee vs Dollar: RBI Steps In to Boost Indian Currency; Budget Signals And Global Trends Hold the Key- Is Stability Finally In Sight?

Rupee Gains Against Dollar: RBI Intervention, Budget Cues, and Global Dollar Trends Shape the Currency’s Next Move

After 12 Years of DIVORCE, Is Jennifer Winget Marrying Again? Wedding Rumors, Karan Wahi’s Ex-Girlfriend Secrets & Personal Details Exposed
Kannada TV Star Kavya Gowda Alleges Rape Threats Amid Family Feud As Husband Somshekar Undergoes Treatment After Being Stabbed By A Close Relative
‘Thought She Was A Bollywood Diva’: Meet IPS Officer Poorva Choudhary, UPSC 2024 Officer Breaks Internet With Her Charm, Chose Uniform Over Glamour

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.

Key Rupee Levels to Watch

Experts expect short-term pressure to persist but remains constructive on the medium-term outlook due to fiscal discipline and India’s undervalued REER.

Key pivot: USD/INR near 92
Upside risk: 92.20–92.50 if 92 breaks decisively
Related Post
Downside support: RBI backing could help the rupee drift toward 91.00–91.20 over time

RBI Steps In as Rupee Tests Record Lows: Recovery Or Just A Pause?

The rupee showed signs of beginning February under unstable conditions, as it hovered near 91.9875 against the US dollar, its lowest level ever. Then came the RBI. The central bank executed an intervention that helped the currency recover to 91.77, marking a 0.2 percent increase from the previous day’s value. Relief, at least for now.

Celebration, however, must wait. The rupee had suffered a sharp decline in the final trading session of January, ending the month at a record low. This raises the question of whether the move signals a genuine recovery or merely a temporary pause. The RBI’s next strategic decision will be closely watched.

(With Inputs From ANI)

Also Read: Gold And Silver Prices After Historic Plunge: MCX, City-Wise Rates And Global 24K

Rupee vs Dollar: RBI Steps In to Boost Indian Currency; Budget Signals And Global Trends Hold the Key- Is Stability Finally In Sight?

The rupee rebounds after RBI intervention as markets reopen post-Budget. Higher borrowing, fiscal discipline, and global dollar trends now guide the currency’s next move. Recovery or pause remains the key question.

Stock Market Reopens After Budget Weekend

Higher Borrowing, Stable Deficit: What the Government’s Fiscal Math Signals

Key Rupee Levels to Watch

RBI Steps In as Rupee Tests Record Lows: Recovery Or Just A Pause?

Recent Posts