At the interbank foreign exchange market, the rupee opened at 90.35 and touched an early high of 90.26 and a low of 90.54 against the dollar. | Photo credit: FRANCIS MASCARENHAS
Forex traders said that despite the positive sentiment following the India-US trade deal, there is still caution as there is no signed or officially released trade deal yet – no framework text or definitive documentation.
At the interbank foreign exchange market, the rupee opened at 90.35 and touched an early high of 90.26 and a low of 90.54 against the dollar.
The domestic unit finally settled at 90.43 (provisional), down 11 paise from the previous close.
On Tuesday, the Indian rupee emerged as the best-performing Asian currency, posting a record gain of 117 paise or 1.28 percent in one trading session to settle at 90.32 against the US dollar after India and the US signed a trade deal.
The Indian rupee fell on Wednesday after a sharp rally in the previous session as investors sought more clarity on the terms of the India-US trade deal.
The weaker-than-expected services PMI also weighed on the rupee. The rupee rose sharply on Tuesday on optimism over the trade deal. However, a sudden rise in crude oil prices put an end to the sharp gains, said Anuj Choudhary, research analyst at Mirae Asset ShareKhan.
“We expect the rupee to trade positively as the India-US trade deal could boost sentiment in the domestic market. FII inflows and positive domestic equities could also support the rupee.
“However, higher crude oil prices amid renewed US-Iran tensions could hamper sharp gains. Traders can also take cues from PMI data from US ISM services. The USD-INR spot price is expected to trade within a range of 90 to 90.60,” Choudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03 percent lower at 97.40.
Brent crude, the global oil benchmark, was 0.10 percent lower at $67.26 per barrel in futures trading.
“Oil prices have been volatile due to the US-Iran standoff, turbulence in broader commodity markets and movements in the dollar index,” said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.
In the domestic equity market, Sensex rose 78.56 points to 83,817.69, while the Nifty rose 48.45 points to 25,776.
Foreign institutional investors bought shares worth ₹5,236.28 crore on Tuesday, according to stock market data.
India’s services sector growth rose to a two-month high of 58.5 in January, reflecting faster growth in new business inflows and output, prompting service providers to hire additional staff, a monthly survey said on Wednesday.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose to a two-month high of 58.5 in January, up from a recent low of 58.0 in December, mainly due to the revival in demand, new business growth and technology investments.
Published on February 4, 2026
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