Rupee slide could ease after deal breakthrough

Experts expect cutrency to gain further towards 89.25-89.50 levels

- CHRISTINA TITUS

WITH THE MUCH-awaited US-India deal announced over the weekend, the Indian rupee's depreciation is expected to slow down, said experts. However, the extent of recovery remains uncertain.

When US President Donald Trump imposed total tariffs of 50% on Indian goods, the currency took a major hit, falling more than 7%. Since hitting a record low of 92.02 on January 30, the rupee has recovered somewhat, though further appreciation will depend on foreign inflows and the Reserve Bank of India's (RBI) intervention.

At an event, Chief Economic Advisor V. Anantha Nageswaran said the rupee would be one of the key beneficiaries of the India-US trade deal.

"Reduced tariff barriers will boost exports for India, particularly against major exporting nations. Improved investor confidence could also lure back FIIs and FDIs, which in turn will benefit the rupee," said Kunal Sodhani, treasury head at Shinhan Bank.