After the tariff cut by Trump, the Indian Rupee is also seeing a great rise. The rupee has strengthened by about 1.2 percent today. The rupee has become the strongest against the US dollar in more than three years. The rupee has appreciated due to the agreement on the trade deal between the US President and PM Modi. Besides, the reduction in tariff rates has also boosted it.
According to Bloomberg, the Indian currency has become the strongest since 2021. The rupee strengthened 1.2% to 90.40 against the dollar on Tuesday after US President Donald Trump said he would reduce tariffs on Indian goods from 50% to 18%. This deal has reduced high tariffs on Indian exports, thereby eliminating a major uncertainty which was putting pressure on the currency.
condition of rupees
The rupee emerged as Asia’s weakest currency in 2025, weakening by nearly 5% over the year and falling by more than 2% in January alone. Pressure on the currency increased due to limited foreign capital inflows and strong demand for dollars from importers. Kunal Sodhani, treasury head of Shinhan Bank India, said that the trade deal has removed a major pressure which was impacting capital flows, Mint reported. Sentiment-based demand for INR has strengthened due to risk re-assessment by foreign investors.
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