Rupee gains 44 paise to 85.27 vs Dollar on hopes of India-US trade deal

Indian and US negotiators are working overtime to finalise a tariff deal ahead of President Donald Trump's deadline.

The Indian rupee strengthened by 44 paise in afternoon trade on Wednesday, rising to 85.2712 against the US dollar. The gain was fueled by growing optimism over a possible trade agreement between India and the United States.

The domestic currency opened at 85.66 per dollar, improving from Tuesday’s close of 85.7113. Traders say hopes of a breakthrough in ongoing tariff talks between New Delhi and Washington are lifting market sentiment.

Indian and US negotiators are working overtime to finalise a tariff deal ahead of President Donald Trump's deadline.

Negotiators from both countries are racing to finalise a deal before US President Donald Trump’s deadline. The White House recently struck a similar deal with Vietnam, reducing US tariffs on Vietnamese goods from a proposed 46 percent to 20 percent. Trump also promised duty-free access for US products in Vietnam, though details remain unclear.

For India, Trump has threatened a 26 percent tariff on select exports as part of his April 2 'Liberation Day' policy. However, those tariffs are currently on a 90-day pause to allow for negotiations.

A strong rally in domestic equities also lent support to the rupee. The Sensex climbed 383.61 points, or 0.46 percent, to close at 83,793.30. The Nifty gained 110.30 points, or 0.43 percent, ending at 25,563.70.

Lower global crude oil prices added further support. Brent crude slipped 0.77 percent to $68.58 a barrel. Since India imports most of its oil, cheaper crude helps reduce import costs and eases pressure on the rupee.