Rupee shows strength after recent decline, gains 21 paise to 90.44 against dollar

After a prolonged period of continuous decline, the Indian rupee strengthened by 21 paise , rising to 90.44 against the US dollar in early trade on Monday, signaling a positive turn in the currency’s performance.

Analysts said the rise comes after weeks of pressure on the rupee and is driven by a mix of domestic and global factors . The retreat in the US dollar index , gains in domestic equities, and active intervention by the Reserve Bank of India , which manages dollar inflows and outflows to prevent excessive volatility, helped support the recovery.

The announcement of a framework for an interim trade agreement between India and the US also contributed to the optimism. Under the deal, the US will reduce tariffs on Indian goods, while India will cut duties on a wide range of US industrial and agricultural products. Experts say this trade pact is expected to boost two-way trade and foreign investment, strengthening the rupee further.

While the India-US trade deal is a key factor , broader trends like strong equity inflows and rising forex reserves , which recently touched a record USD 723.774 billion , also helped the rupee regain ground.