Currency strengthens after Union Budget and easing crude prices, but broader pressures remain
The Indian rupee strengthened by 37 paise to 91.56 against the US dollar in early trade on Monday, a day after the Union Budget 2026–27 was presented in Parliament. The rise came as global crude oil prices eased from recent highs, providing support to the domestic unit.
Forex traders said the Budget offered reassurance to markets rather than dramatic relief, while concerns persist over India’s sizable government borrowing programme, which could weigh on investor sentiment in the near term. The government is expected to borrow around ₹17.2 lakh crore in the next financial year to finance a fiscal deficit projected at 4.3 per cent of GDP.
At the interbank foreign exchange market, the rupee opened at 91.95 against the dollar and then climbed to 91.56, marking a notable gain from its previous close. In the prior session, the rupee had briefly hit a record low of 92.02 before settling slightly higher.
Market analysts noted that the currency’s broader outlook will also be influenced by global factors, including the strength of the US dollar, ongoing crude price movements, and investor reactions to India’s fiscal and economic policies. On the domestic front, equity markets showed signs of recovery after a budget‑day sell‑off, with major indices like the Sensex and Nifty opening higher.