Mumbai, Jun 2 (PTI) The rupee appreciated 16 paise to 95.03 against US dollar in early trade on Tuesday, as the market weighed India’s strong domestic fundamentals against ongoing geopolitical uncertainty.
Forex traders said the USD/INR pair opened on a positive note this morning on a slight risk off sentiment. However, the uncertainty surrounding West Asia continues to cast a shadow over financial markets and energy prices.
At the interbank foreign exchange market, the rupee opened at 95.16 against the US dollar, then touched 95.03 in early trade, up 16 paise from its previous close.
On Monday, the rupee depreciated 34 paise to close at 95.19 against the US dollar.
Market participants are now turning their attention to two key events closer to home — the RBI policy decision scheduled for June 5, the second event is the ongoing trade dialogue between India and the United States, CR Forex Advisors MD Amit Pabari said.
A US delegation led by Assistant US Trade Representative Brendan Lynch will begin discussions with Indian officials in New Delhi this week as both countries work toward finalising a trade agreement. “Markets will closely monitor any progress on tariff-related issues and broader trade cooperation,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.19, down 0.01 per cent.
Brent crude, the global oil benchmark, was trading down 0.59 per cent USD 94.42 per barrel in futures trade.
On the domestic equity market front, Sensex declined 296.19 points to 73,971.30 in early trade, while the Nifty dropped 103.30 points to 23,272.25.
Foreign institutional investors offloaded equities worth Rs 3,911.68 crore on a net basis on Monday, according to exchange data.
On the domestic macroeconomic front, India’s industrial production expanded by 4.9 per cent in April, while manufacturing output grew 6.2 per cent.
Moreover, according to the latest data released by the Controller General of Accounts on Monday, the government successfully met its fiscal deficit target of 4.4 per cent of GDP for FY26, exactly matching its budget estimate.
