Indian Rupee Strengthens Against Dollar Following U.S.-India Trade Agreement

On February 3, the Indian rupee strengthened against the U.S. dollar during the Asian morning trading session, buoyed by the U.S.-India trade agreement. According to Jin10, U.S. President Donald Trump announced on Monday that the United States has agreed to reduce tariffs on India to 18%. Lloyd Chan from Mitsubishi UFJ Bank noted in a research report that the agreement marks a significant easing of bilateral tariff tensions, representing an important realignment after months of strained trade relations. The senior currency analyst added that the offshore rupee's strength against the dollar reflects investor relief as major unresolved risks facing Indian exports have been alleviated. LSEG data shows the dollar fell 1.0% against the Indian rupee to 90.32, after hitting an intraday low of 90.25, the lowest level since January 15.