Rupee Gains on Post-Budget Optimism, RBI Intervention; FPI Inflows Expected

• Indian rupee opened higher at 91.73 against the dollar on February 2, driven by positive investor sentiment post-Union Budget 2026.
• Finance Minister Nirmala Sitharaman announced increased investment caps for Non-Resident Indians (NRIs) in equities via the Portfolio Investment Scheme, aiming to boost FPI inflows.
• Analysts view the budget as offering reassurance for the rupee, maintaining constructive medium-term prospects despite potential short-term pressures.
• The Reserve Bank of India reportedly sold US dollars to prevent the rupee from crossing the 92 mark, following recent lows.
• Market participants await the Monetary Policy Committee meeting, expecting the RBI to maintain steady interest rates.

Why It Matters: Rupee strengthens due to post-budget optimism and RBI intervention, with new policies set to boost FPI inflows.