Tuesday brought cheers to forex markets as the rupee roared over 1% stronger to 90.29 per dollar, riding high on the euphoria of a new India-US trade pact. The agreement has supercharged investor sentiment, heralding fresh foreign investments.
Building on Monday’s 91.53 close—a 48-paise leap to two-week highs—RBI’s spot interventions ensured smooth sailing through choppy waters.
The pair saw aggressive early buying but stabilized in the 90.20-91.20 band after stalling near 92. The ensuing dip is dismissed as technical breathing room.
Veteran traders forecast resilience, with any slide below 90.50-90.80 potentially probing 90 or 89.80, yet the dominant trend stays upward.
Precious metals on MCX faced headwinds from rupee gains, but mid-term bullish signals endure.
Trump’s update post-Modi call unveiled the deal’s crux: 50% to 18% tariff relief for Indian exports, coupled with India’s shift from Russian to US/Venezuelan oil.
Easing bilateral tensions, this paves premium avenues for overseas funds in equities and fixed income, set to reinforce the rupee. RBI vigilance remains key.
Layered with EU trade overtures and growth-centric budgeting, the stage is set for capital surges that enhance BoP resilience and propel India’s global economic stature.