Rupee Recovers After Six-Day Slide as Global Trade Tensions Ease
New Delhi – The Indian rupee snapped a six-day losing streak after global risk sentiment improved, following a pullback from tariff threats linked to Greenland and Europe. The shift helped emerging market currencies breathe easier, allowing the rupee to stage a modest but psychologically important recovery.
The currency opened firmer against the US dollar and initially showed signs of sustained strength during early trade.. However, gains softened later in the session as the rupee struggled to move decisively beyond key resistance levels.
Despite the pullback from early highs, the rupee managed to close stronger than the previous session.. This marked a pause after days of relentless pressure that had pushed the currency to record lows.
Market participants described the movement as consistent with recent trading patterns.. Brief recoveries have repeatedly faced selling pressure, reflecting underlying caution among investors and importers.
The rupee’s earlier decline had been driven by strong dollar demand and persistent global uncertainty.. Concerns around trade policies, delayed bilateral agreements, and risk aversion weighed heavily on sentiment.
Relief came after comments from the US leadership suggested a step back from immediate tariff action against Europe. That shift reduced fears of a wider trade confrontation and improved appetite for risk-sensitive assets.
Asian currencies broadly benefited from the improved tone, with the rupee joining its regional peers in stabilising.. Equity markets and government bonds in the US also reacted positively, reinforcing the supportive global backdrop.
Traders noted that while the external environment offered temporary comfort, domestic pressures remain unresolved.. Import-related dollar demand continues to cap upside moves, especially near psychologically important exchange levels.
Exporters, meanwhile, remain cautious due to uncertainty surrounding trade negotiations and tariff structures.. Delays in agreements have made pricing and hedging decisions more complex for Indian businesses operating globally.
The central bank’s presence in the market has helped smooth volatility but has not fully reversed sentiment.. Intermittent intervention has slowed sharp declines, yet broader forces continue to influence direction.
Analysts believe sustained recovery will depend on clearer signals around global trade stability and domestic economic flows. Any renewed escalation in tariffs or geopolitical tensions could quickly undo recent gains.
For now, the rupee’s rebound offers a brief pause rather than a full reversal of trend. Investors are watching closely to see whether improving global cues can translate into lasting currency stability.
