Rupee gains 1.2% after US-India trade deal cuts tariffs
The Indian Rupee just got a boost, climbing 1.2% to 90.40 per US dollar after a new trade deal between the US and India.
The agreement, announced by President Trump after a call with PM Modi, cuts tariffs on Indian goods from 50% down to 18%.
This move is set to make Indian exports more competitive and could bring in more foreign investment.
Deal gives Indian exporters breathing room
High tariffs were holding back over half of India's exports to the US—think textiles, leather, and machinery.
Lowering them gives these industries some much-needed breathing room and helps stop the rupee's recent slide.
PM Modi called it a "wonderful announcement" for Made-in-India products, and the stock market responded too—the Nifty 50 jumped nearly 5% right after the news.
Deal could help stabilize currency trading
With tariffs cut to 18%, importers and exporters could be more on the same page—potentially reducing bets against the rupee or the incentive to hold back dollars.
This should help balance things out in currency trading and reduce risky speculation going forward.