Forex

Sensex fell over 300 points and the Nifty traded below 25,550 after the RBI Monetary Policy Committee kept the benchmark repo rates unchanged at 5.25%. The NSE Nifty Private Bank Index was the top sectoral gainer, while the NSE Nifty PSU Banks index was the top sectoral loser as rate cut cycle goes on hold.

The RBI's six-member Monetary Policy Committee, led by Governor Sanjay Malhotra, has decided to keep the repo rate unchanged at 5.25%, just as markets expected.

UBS has adjusted its USDINR forecasts to 90, 91, 91.5, and 92 by end-March, June, September, and December.

The Nifty 50 ended 133 points or 0.5% lower at 25.642 and the BSE Sensex tanked 506 points or 0.6% at 83,311. The boarder market showed mixed performance.

Indian equity benchmarks were subdued. The BSE Sensex and the NSE Nifty were trading little changed.

The BSE Sensex rose 2,319 points. It had risen as much as 4,200 points to 85,871.The NSE Nifty 50 rose 2.8% to 25,783.95 after rising as much as 5% intraday.

Schiff comments came after the precious metal recovered on Tuesday following a sharp retreat over the past two sessions.

The central bank has a large negative short forwards book of $62.4 billion as of December, which means it will need to repay these dollars.

After a year of tariffs, FII outflows and stalled momentum, something is shifting for Indian equities. Trade clarity, relative positioning and sentiment are aligning in ways markets have been waiting for.

Intraday, the rupee surged as much as 1.6% to 90.05 per dollar, becoming the best performing currency in Asia.

Indian markets continued their broadbased rally on Tuesday as investors welcomed the IndiaUS trade deal, which reduced reciprocal tariffs and removed a longstanding overhang on equities.

The local currency appreciated as much as 1.2% to 90.42 against the greenback. Meanwhile the yield on the 10-year note fell as much as five basis points to 5.71%

The GIFT Nifty—an early indicator of Nifty 50's performance—traded at 25,919.50 as of 6:30 am, suggesting a gap-up open after India and the United States agreed to a trade deal that cuts reciprocal tariffs on Indian imports to 18%.

The dollars gain of about 1% over Friday and Monday comes after the worlds reserve currency slumped in the second half of January.

Forex traders said the rupee recovered marginally as traders rushed to cover broad dollar weakness.

Anindya Banerjee of Kotak Securities added that the rupee situation should improve considerably once the Reserve Bank of India steps in.

Here, at NDTV Profit, we will take a look at five reasons why the rupee has continued to weaken against the US dollar.

Jefferies said the contours of the proposed pact appear similar to the recently concluded India-UK FTA, with goods trade taking centre stage and services expected to remain a key area to watch.

The US currency extended losses on Tuesday after a Danish pension fund that had about $100 million in Treasuries at the end of 2025 said the US is no longer "good credit" and committed to selling the bonds.

Coming to the near-term outlook, Kotak Securities believes that over the next 1-2 months, especially in March - the last month of fiscal - rupee tends to see a lot of flows from exporters, so one positive factor could play out on the domestic unit.