The Indian rupee appreciated by 16 paise to 95.03 against the US dollar in early trading on Tuesday, reflecting the market’s assessment of India’s robust domestic fundamentals amidst ongoing geopolitical uncertainties.
Forex traders indicated that the USD/INR pair opened positively this morning amid a slight risk-off sentiment. Nonetheless, the prevailing uncertainty surrounding developments in West Asia continues to exert pressure on financial markets and energy prices.
In the interbank foreign exchange market, the rupee opened at 95.16 against the US dollar before climbing to 95.03 in early trading, marking a gain of 16 paise from the previous close. On Monday, the rupee had depreciated by 34 paise, closing at 95.19 against the dollar.
Market participants are focusing on two significant events: the Reserve Bank of India (RBI) policy decision scheduled for June 5, and ongoing trade discussions between India and the United States, as noted by Amit Pabari, Managing Director of CR Forex Advisors. A US delegation led by Assistant US Trade Representative Brendan Lynch is slated to meet with Indian officials in New Delhi this week, working towards finalizing a trade agreement. “Markets will closely monitor any progress on tariff-related issues and broader trade cooperation,” he emphasized.
In related developments, the dollar index, which measures the US dollar’s strength against a basket of six currencies, was trading at 99.19, down 0.01 percent. Meanwhile, Brent crude, the global oil benchmark, was trading 0.59 percent lower at $94.42 per barrel in futures.
On the domestic equity front, the Sensex dropped by 296.19 points to 73,971.30 in early trading, while the Nifty fell by 103.30 points, settling at 23,272.25. Foreign institutional investors sold equities worth ₹3,911.68 crore on a net basis on Monday, according to exchange data.
From a macroeconomic perspective, India’s industrial production saw a growth of 4.9 percent in April, with manufacturing output increasing by 6.2 percent. Additionally, data released by the Controller General of Accounts revealed that the government successfully met its fiscal deficit target of 4.4 percent of GDP for FY26, in line with budget estimates.
Published on June 2, 2026.
