Market Brief: Rupee Rebounds Amid Global Shifts The Indian rupee appreciated by **7 paise** on Monday, February 23, 2026, to settle at **90.87** against the US dollar. This recovery follows a sharp **26-paise** drop in the previous session, where the local unit had touched **90.94**. Market sentiment was bolstered by a significant retreat in the US Dollar Index (**DXY**), which fell **0.32%** to **97.47**. The greenback faced pressure following a US Supreme Court ruling that struck down emergency tariff measures, easing immediate fears of aggressive trade barriers. Energy and Trade Dynamics Global crude oil prices provided much-needed relief to the rupee. Brent crude, the global benchmark, dropped **1.22%** to trade near **$70.89** per barrel. This decline is largely attributed to emerging prospects of a diplomatic breakthrough in US-Iran nuclear negotiations. Lower energy costs directly benefit India’s current account, reducing the demand for dollars by oil importers. Despite this, the market remained cautious as the US administration signaled potential alternative tariffs of **15%**, keeping trade-related uncertainties alive. Institutional and Reserve Data India’s external position remains shielded by record-high foreign exchange reserves. According to latest RBI data, reserves surged by **$8.663 billion** to reach an all-time peak of **$725.727 billion** for the week ended February 13. However, the rupee's gains were capped by persistent foreign fund outflows. Foreign Institutional Investors (**FIIs**) offloaded equities worth **₹934.61 crore** in recent sessions. This capital exit was partially offset by strong domestic equity performance, with the Sensex rising **479.95 points** to close at **83,294.66**. Monetary Outlook The Reserve Bank of India maintains a neutral stance, recently holding the repo rate at **5.25%**. With headline inflation projected at **3.2%** for the current quarter, the central bank has focused on stability amidst geopolitical friction. Forex traders expect the rupee to trade within a range of **90.60 to 91.00** in the near term. While the US Supreme Court verdict provided a tactical bounce, the underlying demand for dollars from importers and FIIs continues to provide a floor for the exchange rate.