New Delhi, Feb. 2 -- The Indian rupee gained over 40 paise against the US dollar on Monday, February 2, following a possible intervention by the Reserve Bank of India (RBI) to shore up the domestic unit.

The forex market opened for trading after a two-day weekend holiday during which the Union Budget, presented by the Finance Minister in the parliament on February 1, announced a higher-than-expected government borrowing programme.

The government will gross borrow Rs.17.2 lakh crore in the upcoming financial year (2026-27), which will be 17% higher than the current fiscal year's Rs.14.61 lakh crore. However, FY27 fiscal deficit is set at 4.3% of GDP, with the debt-to-GDP ratio easing to 55.6%, reinforcing policy credibility.

The rupee a...