Rupee bounces back after Trump's tariff move
The rupee climbed to 91.50 against the dollar on Thursday, recovering from a record low after President Trump announced he's scrapping tariffs on eight European countries.
This news gave investors a boost and helped turn things around for the currency.
Why does this matter?
A stronger rupee may reflect movements in oil prices and exchange flows, and it can affect trade and capital flows.
The rebound also lifted Indian stock markets—Sensex jumped over 500 points and Nifty rose too—showing investors are feeling more confident.
What's behind the shift?
Trump's surprise announcement at Davos eased some global tensions, sparking optimism in both currency and equity markets.
Still, the rupee has been pretty volatile lately amid global uncertainty and some foreign outflows.
Traders are hopeful it'll keep strengthening if there's progress on a US-India trade deal—but global ups and downs remain a challenge.