Rupee Rises Strongly Against US Dollar, Peace Talks & Trade Deals Bring Hope

Mumbai: On Tuesday morning, the Indian rupee became stronger by 74 paise and reached 84.62 against the US dollar. This is a big rise. On Friday, the rupee had closed at 85.36. The forex market was closed on Monday for Buddha Purnima.

India-Pakistan Tensions Ease

One big reason for this jump is the easing of tensions between India and Pakistan. Both countries announced on Saturday that they will stop all military actions — on land, sea, and air. This has made investors feel more positive about India.

Prime Minister Narendra Modi also gave a strong message to Pakistan. He said that India will not give in to any threats and will not allow terrorism and peace talks to go together. He also mentioned Operation Sindoor as a new policy against terrorism.

US-China Trade Deal Helps

Another reason for the stronger rupee is the trade deal between the United States and China. Both countries agreed to lower tariffs on goods. US tariffs on Chinese goods were cut from 145 per cent to 30 per cent, and China’s tariffs on US goods dropped from 125 per cent to 10 per cent. This has improved the mood of global markets.

The US dollar index, which shows how strong the dollar is compared to other currencies, was down by 0.20 per cent at 101.58. This also helped the Indian rupee.

Foreign Investors Buy Indian Stocks

Foreign investors are also buying Indian stocks. On Monday, foreign institutional investors bought shares worth Rs 1,246.48 crore. This gives strength to the Indian rupee because more dollars are coming into the country.

Oil Prices and Stock Market

Brent crude oil, the world oil price benchmark, was slightly down at $64.82 per barrel. But higher oil prices can be a problem for India, as it imports a lot of oil.

The Indian stock market, however, was down. The Sensex fell 902.68 points, and the Nifty dropped 207.15 points.

What’s Next?

Experts say the USD to INR pair may stay between 84.50 and 85.10 for now. Traders are watching closely.

(With PTI Inputs)

news