INR Poised for Rebound Below 90/USD as Trump Cuts Tariffs on Indian Goods

• US President Donald Trump announced a trade deal with India, reducing reciprocal tariffs on Indian goods from 25% to 18%.
• The deal, following a call with PM Narendra Modi, is expected to help the Indian Rupee (INR) rebound below 90 levels against the USD.
• The INR appreciated by 48 paise on February 2, closing at 91.5363 against the USD, its highest single-day gain in over six weeks.
• The gain was partly attributed to timely intervention by the Reserve Bank of India (RBI) in the spot forex market.
• Trump and Modi also discussed global security and efforts to end the Russia-Ukraine war, with Modi reportedly agreeing to increase oil purchases from the US and Venezuela.

Why It Matters: Trump's tariff cut on Indian goods is set to strengthen the INR and boost market confidence.