Key Highlights

• The Indian rupee strengthened over 1% to 90.30 per U.S. dollar, marking a sharp single-day appreciation.
• Gains were driven by investor optimism after a late-night India–U.S. trade deal announcement.
• The rupee had closed at 91.5363 in the previous session, already supported by suspected RBI intervention.
• The trade agreement includes a reduction in U.S. reciprocal tariffs on Indian goods from 25% to 18%.
• Commitments to adjust India’s crude oil sourcing toward the U.S. further improved sentiment and encouraged foreign inflows.

USD/INR Overview

The Indian rupee strengthened to around 90.23 per U.S. dollar, rebounding from a record low of nearly 92.19 seen on January 28, after the U.S. reduced tariffs on Indian goods. On 03 February 2026, USD/INR spot prices declined 1.05% to 90.31, extending the recovery. The rupee had already gained about 48 paisa in the prior session, touching a two-week high amid suspected RBI intervention. Despite the rebound, persistent geopolitical and economic uncertainty continues to keep USD/INR volatile.

Rupee Rebounds Sharply on U.S. Tariff Cut, RBI Support

The Indian rupee strengthened 1.01% to around 90.31 per U.S. dollar, rebounding from the record low near 92.19 on January 28 after the U.S. cut tariffs on Indian goods to 18% and removed an additional 25% duty linked to Russian oil purchases. The agreement between President Donald Trump and Prime Minister Narendra Modi improved the export outlook for textiles and machinery, easing foreign exchange flow pressures. The recovery was further supported by suspected Reserve Bank of India intervention in the spot market, which helped contain volatility amid pressure from higher oil prices and record government borrowing.

Technical View: USDINR Momentum Wobbles Below Key Levels

From a technical perspective, USDINR spot prices remain below the 21-day and 50-day Simple Moving Averages at INR 90.88 and INR 90.32, which continue to act as immediate resistance following a red candlestick session. The near-term tone has softened after a single-day decline of more than 1.00%, indicating a period of consolidation after recent gains. Momentum has moderated, with the 14-day RSI easing to 42.65 after moving away from overbought territory. On the downside, support is seen near INR 88.00 and 86.00, while resistance is located around INR 92.00 and INR 94.00.

Bottom Line: Rupee Stages a Tactical Pushback

After a sharp USD/INR rally over the past nine months, the rupee is showing signs of near-term resilience. Policy support, easing trade pressures, and intervention-led stability have helped curb volatility. While momentum has cooled, the broader environment suggests consolidation rather than a trend reversal, keeping price action sensitive to global cues. 

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