Mumbai, Feb 3 (SocialNews.XYZ) The Indian rupee surged over 1 per cent on Tuesday, trading at 90.29 to the US dollar, following an India-US trade agreement that sparked investor optimism and prompted foreign inflows.
The local currency had closed at 91.53 on Monday, reaching a two-week high to gain 48 paise in the prior session, after the Reserve Bank of India reportedly intervened in the spot market.
Analysts said the rupee’s surge to the dollar pair was higher before it consolidated 90.20–91.20 zone. The current levels followed a corrective pullback after failing to sustain levels above 92, they said.
"The pullback is corrective in nature, with the broader higher-high, higher-low structure still intact on higher time frames," market participants said.
Analysts said the near‑term technical structure remains constructive, with a break below 90.50–90.80 opening the way toward 90–89.80 levels.
A softer dollar‑rupee is capping upside in MCX bullion, though the medium‑term trend for precious metals remains supportive, they added.
US President Donald Trump announced a trade deal with India on Monday that included a reduction in reciprocal tariffs on Indian goods from 25 per cent to 18 per cent, following a phone call with Prime Minister Narendra Modi.
The agreement also reportedly included India’s commitment to reduce purchases of Russian oil and increase imports from the United States and potentially Venezuela.
Analysts said that reduced trade uncertainty following the India-US trade deal can attract foreign investment into Indian equities and debt and boost demand for the rupee. Market participants cautioned, however, that the Reserve Bank’s stance in the coming sessions will be closely watched.
The combination of the US-India trade deal, the EU-India trade deal and the growth-oriented Budget is expected to boost the market sentiments and trigger immediate foreign capital inflows, potentially turning India's Balance of Payments (BoP) position.
—IANS
aar/na
Source: IANS
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