The rupee rose 5 paise to 90.67 against the US dollar on Wednesday on the back of a drop in global crude oil prices and FII inflows.
However, a stronger greenback and a weak start to day at the domestic equity markets capped sharp gains in the local unit, forex traders said.
At the interbank foreign exchange, rupee opened at 90.60 but lost some ground to trade at 90.67 against the US dollar, higher by 5 paise from its previous close.
3 February 2026
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The rupee gained 2 paise to settle at 90.72 against the US dollar on Tuesday.
"The RBI sold dollars at 90.78, ensuring that rupee closed near to Monday closing while FPIs were buyers of equities yesterday (Tuesday)," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Today the rupee is expected to move in the same range of 90.40-80, he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.10 per cent higher at 97.24.
"The dollar index was slightly higher and analysts expect scope for a near-term rebound after a prolonged slump. Strong US growth and foreign investment interest supported the dollar," Bhansali added.
Brent crude, the global oil benchmark, was trading 0.36 per cent lower at USD 68.40 per barrel in futures trade.
On the domestic equity market front, Sensex fell 77.56 points to 83,373.40 in early trade while the Nifty declined 26.25 points to 25,699.15.
On Tuesday, foreign institutional investors turned net buyers and purchased equities worth Rs 995.21 crore, according to exchange data.
