India After the news of trade agreement between India and America, the rupee rose by 119 paise to 90.30 against the US dollar in early trade on Tuesday. Forex traders said the announcement of US tariff cuts has changed the entire picture. This has strengthened India’s position in front of the world and opened the doors for the return of foreign institutional investors to the Indian market.
Rupee opened at 90.30 against US dollar
In the Interbank Foreign Exchange market, the rupee opened at 90.30 against the US dollar, registering an increase of 119 paise against the previous close of 91.49. Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, was down 0.20 per cent at 97.43. Global oil benchmark Brent crude was trading 0.41 per cent lower at $66.03 per barrel in futures trade.
Strong rise in domestic stock market also
Let us tell you that on Tuesday, the news of trade agreement between India and America had a wide impact in the domestic stock market also. Today BSE Sensex opened with a strong jump of 3656.74 points (4.48%) at 85,323.20 points. Whereas, NSE’s Nifty 50 index also started trading at 26,308.05 points with a bumper rise of 1219.65 points (4.86%).
Donald Trump announced trade deal with India
While announcing the trade deal with India on Monday, the US President had announced reducing the tariff from 25 percent to 18 percent. Trump made this announcement after a phone conversation with Prime Minister Narendra Modi. Donald Trump has just reduced the 25 percent reciprocal tariff to 18 percent, while the additional 25 percent tariff imposed on purchases of crude oil from Russia is still in effect.
25% additional tariff will be removed after the purchase of Russian oil stops
A White House official said that the US will also remove the 25 percent tariff imposed on India for buying Russian oil because India has reduced the purchase of oil from Russia. However, he said that to remove the additional tariff of 25 per cent, India would have to completely stop purchasing crude oil from Russia.
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