Rupee Surges to 90.25 Against Dollar as U.S.-India Trade Pact Shifts Markets

The Indian rupee climbed sharply during the Asian trading session on February 3, with the currency reaching an intraday low of 90.25 against the U.S. dollar—its strongest level since mid-January. This rally came as markets welcomed the newly announced U.S.-India trade agreement, which President Donald Trump confirmed would see American tariff rates on Indian goods reduced to 18%. According to data from LSEG, the offshore rupee appreciated 1.0% to close at 90.32, marking a significant turnaround after weeks of trade uncertainty.

Trade Deal Reshapes Bilateral Economic Outlook

The tariff reduction marks a pivotal moment in U.S.-India relations, moving both nations away from the elevated tensions that had dominated recent months. Lloyd Chan, a senior currency analyst at Mitsubishi UFJ Bank, emphasized in his research that the agreement represents far more than a simple numbers adjustment—it signals a fundamental repositioning of trade priorities between the two countries. With major export risks substantially diminished, Indian businesses and foreign investors are reassessing their exposure to the rupee, driving fresh demand for the currency.

The 90.25 Level: Rupee’s Strongest Foothold Since January

The 90.25 mark holds particular significance as the strongest point the rupee has reached since January 15, underscoring the scale of investor confidence restoration. Market analysts attribute this move to two converging forces: relief over resolved tariff disputes and renewed appetite for Indian assets. The combination of concrete policy action and positive guidance from major financial institutions has positioned the rupee favorably against continued dollar headwinds in the broader Asian currency complex.