Rupee Rises on Trade Talks, GDP Outlook

2026-01-14 05:10 By Mariene Camarillo 1 min. read

The Indian rupee strengthened to around 90.1 per dollar, recovering after losses from the previous session amid ongoing trade talks and the latest GDP forecast.

Market sentiment remained measured ahead of discussions between India and the United States.

External Affairs Minister Jaishankar spoke on Tuesday with US Secretary of State Rubio on trade, critical minerals, nuclear energy, defence, and energy.

Negotiations on a bilateral trade deal continue, though progress remains slow due to US demands on India’s farm and dairy sectors.

Concerns were eased as government sources stated that the recently announced 25% tariff would have minimal impact on India, given that trade with Iran accounts for only about 0.15% of the country’s total trade.

Separately, the World Bank retained India’s GDP growth forecast at 6.5% for 2026-27, signaling a slowdown from its estimate of 7.2% for the current fiscal year, assuming the US maintains 50% tariffs on certain imports.



News Stream
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The Indian rupee hovered around 95.74 per dollar, extending losses for a third consecutive session to a three-week low as higher oil prices, elevated US Treasury yields, and a risk-off mood weighed on the currency. Brent crude neared $92 a barrel, rising for a fourth straight day amid uncertainty over the Strait of Hormuz, while the 30-year US Treasury yield climbed to its highest level since 2007, further dampening risk appetite. The rupee also remained under pressure after the RBI brought forward by a month the deadline for its discounted foreign-currency swap facility for non-resident Indian deposits, souring near-term sentiment. Meanwhile, strong underlying dollar demand continued to weigh on the currency, although daily RBI intervention through dollar sales helped limit the decline and cap volatility.
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