Re logs best single-day gain since Dec 2018

THE RUPEE BOUNCED back sharply on Tuesday following US President Donald Trump's announcement on Monday reducing reciprocal tariffs on Indian goods to 18%.

- CHRISTINATITUS

The domestic currency rose 1.36% to 90.27 against the dollar. This is the best single-day gain since December 2018.

"We have long argued the trade deal would be a gamechanger. The rupee at 92 was more than what your fundamentals warranted and it was purely sentiment-led overshooting," said Kanika Pasricha, chief economic adviser, Union Bank of India.

She added that the trade deal has now put a lid on that overshoot, and the rupee has returned to the 90 level."Overall, this is great news for the currency market," she said.