Rupee Gains 13 Paise to 87.80 Against US Dollar on Optimism Over India-US Trade Deal

New Delhi, October 23: The Indian rupee is showing positive signs of strength and has increased by 12 paise to 87.00 against the US Dollar in early trade today, on October 23. This comes after positive investor sentiments following renewed hopes of a trade agreement between India and the US.

Strong Start Backed by Trade Hopes and Market Gains

At the interbank foreign exchange market, the rupee opened at 87.80 per dollar, a 13-paise rise from its previous close of 87.93. The strength comes after investor sentiment turned positive in hopes that the US will reduce the tariffs imposed on India in the upcoming trade pact. It is expected that the US may ease tariffs on Indian goods to 16% from the current 50% tariffs. This makes up for a part of the ongoing negotiations between India and the US, as the US President and the Indian Prime Minister recently discussed trade issues over a phone call.

Following the conversation, President Trump described the India-US relationship as “great” and hinted that “some great deals” were in progress.

Equities Rally and FII Inflows Support Rupee

The strength in the rupee is also supported by the rally in Indian equities, mainly due to the festive season. As of 10:30 today, Sensex was up by 0.88%, or 746.16 points, and was trading at 85,172.50. On the other hand, the Nifty 50 was also trading in the green and was up by 0.80%, or 206.60 points, and was trading at 26,075.20 at the same time.

Investors Still Cautious

Although the rupee is being supported by renewed optimism about the reduced tariffs and FIIs being net buyers, investors are still cautious. It remains to be seen how the trade negotiations work out in the coming days.

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