Dollar vs Rupee: The country has got significant relief due to the major reduction in high tariffs imposed by America on India. Tariff rates have been reduced from 50 percent to 18 percent. While this announcement of former President Donald Trump is being welcomed widely, its positive impact is also being seen on different sectors. After this decision, market sentiment has strengthened and the rupee has also appreciated tremendously.
Tremendous rise in rupee
On the morning of Tuesday, February 3, 2026, the second trading day of the week, the rupee opened with a strength of about 1.2 percent at 90.40 against the dollar, which reflects the confidence of foreign investors and the positive reaction of the market towards global cues.
Forex traders say that the reduction in US tariffs has changed the entire picture, which has strengthened India’s position at the global level and increased the chances of return of foreign institutional investors (FIIs) to the Indian market.
stock market boom
Here, in the interbank foreign exchange market, the rupee opened at 90.30 against the dollar, which shows a strengthening of 119 paise compared to the previous closing level of 91.49. Meanwhile, the dollar index, which gauges the greenback’s position against six major currencies, fell 0.20 per cent to 97.43, while global oil benchmark Brent crude futures were trading 0.41 per cent lower at $66.03 per barrel. At the same time, according to stock market data, foreign institutional investors sold shares worth Rs 1,832.46 crore on Monday.
It is noteworthy that America had earlier imposed a base tariff of 25 percent on India, while due to the purchase of crude oil from Russia, an additional tariff of 25 percent was also imposed. In this way, a huge duty burden of 50 percent was imposed on India.
Several rounds of talks and discussions on trade deals were going on regarding this issue for a long time, but no concrete results were reached. Due to this, Indian exporters were facing serious challenges financially and their competitiveness was also being affected.
Also read: Market bomb due to tariff deal! Sensex jumps 2600 points, Nifty crosses 25,800
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