The rupee appreciated drastically on Monday, appreciating 42 paise to reach 91.51 (provisional) against the U.S. dollar a day after the Union Budget 202627 was presented. The local currency was provided with an advantage of a sharp drop in the price of crude oil, as this relieved the pressure on the import bill in India and the general mood of the market.
By the end of trading on February 2, 2026, the rupee was trading at 91.51 against the greenback, a massive comeback after hitting lows. The rupee had tumbled to its all-time low of 92.02 on the preceding trading session, January 30, before it narrowed the losses to close at 91.93 against the dollar.
The recovery on Monday was due to the global crude prices. The global oil market price, which is the Brent crude, dropped by 4.46 per cent to USD 66.23 a barrel in the futures market. The fall happened during the statements of a diplomatic contact between the United States and Iran in the context of preventing a military confrontation. The market had been driven to almost USD 72 per barrel for oil over the weekend due to a possible U.S strike against Iranian soil, and the market had sharply declined because tensions had calmed down.
The rupee was also supported by the domestic equity markets. The yardstick Sensex index shot 943.52 points to close at 81,666.46, with the Nifty index shooting 262.95 points to end at 25,088.40, signifying a fresh purchasing enthusiasm in industries.
The equity recovery followed an unstable response to the Union Budget. By Sunday, the markets were reacting negatively to the FY27 Budget plans, especially the tax hike on securities transactions on derivatives and the taxation of buybacks. Nonetheless, the calming effects on the global market and decreased oil prices contributed to rebuilding investor confidence and benefiting the equities as well as the domestic currency.
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