The Indian rupee strengthened to its highest level this month on Tuesday, buoyed by easing fears of additional US tariffs and expectations that planned GST reforms will spur domestic growth.
The currency rose to as much as 87.2050 per US dollar, compared with 87.35 in the previous session, before settling at 87.2250. Analysts attributed the gains to renewed optimism following the Trump-Putin meeting and upcoming US-Ukraine talks, which Nomura said may reduce the likelihood of new sanctions or tariffs on India over its Russian oil purchases.
Prime Minister Narendra Modi’s proposed GST rationalisation is also lifting sentiment, with economists saying the measures could boost consumption and offset pressure from weak external demand.
While the rupee advanced, most Asian currencies slipped as US Treasury yields climbed, with the 10-year yield hitting a two-week high on Monday.