Mumbai: The Indian rupee strengthened sharply on Monday, rising 119 paise to 90.30 against the US dollar, driven by positive sentiment following the India–US trade deal and the reduction of US tariffs on Indian goods to 18 per cent.
Forex traders said the tariff cut has changed market perception by improving India’s relative position compared to other emerging economies. The move has also reopened the possibility of foreign institutional investor (FII) participation, boosting demand for the domestic currency.
The rupee’s appreciation was supported by improved investor confidence and expectations of stronger capital inflows. Market participants believe the easing of trade-related concerns will help Indian exporters and strengthen the overall economic outlook.
However, traders noted that global factors such as movements in crude oil prices, US Federal Reserve policy signals, and geopolitical developments will continue to influence the rupee’s performance in the near term.
