The Indian rupee appreciated by 12 paise to 88.04 against the US dollar in early trade on Tuesday. Investors were cautious but optimistic as they awaited signals from the India-US trade talks being held in New Delhi.
According to forex traders, uneven capital flows and concerns arising from US President Donald Trump’s tariff policies have pressured the rupee in recent weeks. At the interbank foreign exchange, the domestic currency opened at 88.05 per dollar and quickly strengthened to 88.04. During the session, it also touched 88.16 against the greenback.
Equity benchmarks opened slightly higher on the same day, driven by positive sentiment over progress in the trade dialogue. The Nifty 50 advanced 0.17 percent to 25,110.75 points while the BSE Sensex climbed 0.2 percent to 81,956.51 at 9:30 am.
Market participants noted that 13 out of 16 major sectors gained, though the improvements remained modest. Broader indices also showed strength, with mid-cap shares adding 0.2 percent and small-cap counters gaining 0.5 percent. The overall outlook remained tied to outcomes of the trade talks and the US Federal Reserve’s upcoming interest rate decision.
