Boosted by the India-US trade deal announcement, the Indian currency 'Rupee' appreciated 119 paise to 90.30 against the US dollar in early trade on Tuesday. The domestic equity indices have also reacted positively to the development, surging nearly 3 per cent in the early trade.
U.S. President Donald Trump announced earlier that tariffs on imports from India had been reduced from 50 per cent to 18 per cent.
The interbank forex market opened at 90.30 against the US dollar, up 119p from its previous close of 91.49p.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.20 percent at 97.43.
Brent crude, the global oil benchmark, was down 0.41 percent at US$66.03 a barrel in futures trade.
The stock market is skyrocketing
Stock market benchmarks Sensex and Nifty opened by a wide margin after India and the US agreed to announce a trade deal, which will see reciprocal tariffs on Indian goods come down to 18 per cent from the current 25 per cent.
The BSE's 30-share benchmark Sensex rose 3,656.74 points to 85,323.20 in early trade. The NSE 50-share index Nifty50 rose 1,219.65 points to 26,308.05.
Both the major indices later extended their winning momentum, with the Sensex rising 4,205.27 points or 5.14 per cent to 85,871.73 and the Nifty up 1,252.8 points or 4.99 per cent to 26,341.20.
At the time of writing, the benchmark 30-share Sensex was up 2,138.08 points, or 2.62 per cent, at 83,804.54, while the Nifty was up 607 points, or 2.42 per cent, at 25,695.40.
(With Inputs from PTI)