Rupee Recovers 13 Paise Against Dollar as Trump Drops EU Tariff Threat

• The Indian rupee recovered 13 paise to 91.58 against the US dollar on January 22.
• The recovery was driven by improved risk appetite after US President Donald Trump withdrew his threat to impose tariffs on European allies over Greenland.
• Trump announced a "framework of a future deal" on Greenland after meeting NATO Secretary General Mark Rutte at the World Economic Forum in Davos.
• The rupee had previously hit a record low of 91.74 against the dollar on January 21 due to risk-off sentiment and foreign investor selling.
• Experts attribute the rupee's weakness primarily to global risk aversion and geopolitical tensions, rather than domestic factors.

Why It Matters: Rupee strengthens as Trump eases EU tariff tensions, improving global risk sentiment.