Rupee Strengthens to ₹90.40 After Trade Deal
The Indian rupee strengthened to ₹90.40 against the US dollar, gaining about 1.2% following news that the United States reduced tariffs on Indian goods as part of a trade agreement. The appreciation reflected improved investor sentiment and expectations of stronger foreign investment flows.
Market Reaction and Trade Impact
The currency had been under pressure in recent months amid global interest rate concerns and trade tensions. After the tariff cut was announced, traders responded positively, seeing the move as supportive for India’s export sectors. A weaker dollar and optimism on broader economic ties with the US contributed to the rupee’s gains.
Broader Currency Trends
Analysts said the rupee’s rise was also supported by foreign fund inflows and stable crude oil prices, which helped ease concerns about India’s trade deficit. However, they cautioned that currency movements can remain volatile based on global risk sentiment, interest rate differentials and macroeconomic data from major economies.
India’s central bank continues to monitor the forex market, and policymakers have previously intervened to smooth excessive volatility.
