The Indian rupee inched higher to around 90.4 per dollar, extending gains from the previous week, as investors assessed whether optimism around an interim US–India trade deal would lead to a sustained uptick in foreign portfolio investment in Indian markets. Overseas investors have begun returning to domestic equities this month, with net purchases of roughly $900 million, reversing about $4 billion in net outflows seen in January. Despite this improvement, traders remain cautious about the durability of capital flows and continue to monitor broader global economic indicators. In addition, the interim trade framework is expected to improve market access for Indian auto component manufacturers in the United States. Under the agreement, India will receive preferential tariff-rate quotas on automotive parts that had previously faced elevated national security tariffs.