Rupee Surges 1.5% After India-US Trade Deal; Rarest Intraday Rally Since 2014

• The Indian rupee saw a rare intraday gain of nearly 1.5% on February 3, 2026, marking its third-strongest rally since 2014.
• The surge followed a late-night trade deal announced by PM Narendra Modi and US President Donald Trump, boosting investor optimism and foreign inflows.
• The deal includes a reduction in US tariffs on Indian goods from 25% to 18%, giving Indian exporters a relative advantage.
• India also agreed to cease Russian oil purchases, increasing imports from the US and potentially Venezuela.
• Analysts expect foreign portfolio investors (FPIs) to buy Indian equities, though the RBI's stance and global investment trends will influence the rupee's appreciation.

Why It Matters: Rupee's rare 1.5% surge driven by India-US trade deal and tariff cuts, boosting investor confidence.