FX.co ★ Indian Rupee Rises to Over 3-Week High

The Indian rupee advanced to approximately 90.1 against the US dollar, reaching its strongest position in over three weeks, as corporate dollar transactions moderated. Corporate financial activities have continuously influenced the currency, while a dip in forward premiums and increased exporter hedging have helped mitigate immediate depreciation pressures. Furthermore, the rupee is bolstered by the recent US-India trade agreement, which reduces US tariffs on Indian goods from 50% to 18%, while still protecting certain agricultural products. Crucial aspects such as timelines, product coverage, and enforcement mechanisms are yet to be finalized. Analysts suggest that the agreement supports Indian assets, although sustainable appreciation will hinge on clarity regarding its execution and broader capital flows. Investors remain cautious in anticipation of developments from the upcoming Budget session and the Reserve Bank of India's interest rate decision slated for February 6, 2026.