Home / Business and Economy / INR Surges 1.33% As India, US Ink Trade Agreement
INR Surges 1.33% As India, US Ink Trade Agreement
3 Feb
Summary
- Indian rupee climbed over 1% to a three-week high.
- US agreed to lower reciprocal tariffs on Indian goods.
- Domestic stock indices surged over 2.5 percent.
On Tuesday, the Indian rupee experienced a significant surge, marking a three-week high and appreciating by over 1.33% to close at 90.27 against the US dollar. This upward movement was largely driven by a newly agreed-upon trade deal between India and the United States.
Under the terms of the agreement, the US will reduce reciprocal tariffs on Indian goods from the current 25% down to 18%. This development was announced by US President Donald Trump following discussions with Indian Prime Minister Narendra Modi.
The positive news from the trade front had a ripple effect on domestic financial markets. Both the benchmark BSE Sensex and the broader NSE Nifty index saw substantial gains, climbing by over 2.5 percent. This surge in stock indices was further supported by a decline in crude oil prices and expectations of increased foreign investment inflows, which collectively bolstered investor confidence.
