Rupee Jumps 119 Paise to 90.30 as US Cuts Tariffs on India to 18 Percent

Strong Opening in Early Trade​

The Indian rupee strengthened sharply in early trade on Tuesday, appreciating 119 paise to 90.30 against the US dollar. The move followed a significant reduction in US tariffs on Indian goods to 18 percent from the earlier 50 percent level.

At the interbank foreign exchange market, the rupee opened at 90.30, marking a sharp gain from its previous close of 91.49.

Impact of US India Trade Developments​

The tariff reduction was announced after the conclusion of a US India trade agreement, endorsed by US President Donald Trump and Indian Prime Minister Narendra Modi. The lower tariff level improves India’s relative trade position compared with some regional peers and has had an immediate impact on currency sentiment.

Dollar Index and Crude Oil Trends​

In global markets, the dollar index, which measures the US currency against a basket of six major currencies, was trading 0.20 percent lower at 97.43.

Brent crude oil prices were also under pressure, with the global benchmark trading 0.41 percent lower at USD 66.03 per barrel in futures trade.

Equity Markets Rally Sharply​

Domestic equity markets opened with strong gains alongside the rupee’s appreciation. The benchmark Sensex surged 2,138.08 points, or 2.62 percent, to trade at 83,804.54. The Nifty advanced 607 points, or 2.42 percent, to 25,695.40.

On the institutional front, foreign investors had sold equities worth Rs 1,832.46 crore in the previous session, according to exchange data.

Focus on Central Bank Stance​

Market participants are closely tracking the stance of the Reserve Bank of India in the near term, as currency movements, capital flows, and global cues continue to shape trading conditions.