23.10.202503:23:52UTC+00Indian Rupee Holds Near 1-Month High

The Indian rupee is trading around 87.7 per USD, maintaining its position near a one-month high, as investors returned from a two-day break to encouraging developments in US-India trade relations. Reports indicate that the two nations are on the verge of finalizing an agreement that would reduce US tariffs on Indian imports to approximately 15%–16%, a significant decrease from the current rate of around 50%. Key areas of focus in these negotiations include energy and agriculture. Under the potential agreement, which may be revealed at the upcoming ASEAN summit, India is expected to gradually scale back its imports of Russian oil while increasing its intake of US corn and soymeal. Additionally, the strength of the rupee has been bolstered by intervention from state-run banks through dollar sales, likely conducted on behalf of the Reserve Bank of India. Recently, the central bank has intervened assertively in the foreign exchange market, executing at least two operations to elevate the rupee from its historic lows.