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Rupee Recovers 15 Paise from Record Low to 91.50 vs Dollar
Last Updated: 22nd January 2026 - 02:30 pm
Summary:
Rupee recovered 15 paise to ₹91.50 against dollar on January 22 after Trump's Davos announcement scraps Europe tariffs over Greenland, boosting risk appetite.
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The Indian rupee appreciated by 15 paise against the dollar and opened at ₹91.54 before continuing to gain strength throughout the rest of the morning, climbing back from its all-time low close. The rupee's rebound was aided by increasing positive investor sentiment stemming from President Trump's announcement that he will not introduce tariffs on eight nations over Greenland.
The Indian currency gained strength following a drastic drop of 68 paise to ₹91.65 yesterday. The domestic equity market was also supportive of the rupee's rise.
Trump's Davos Shift Lifts Mood
President Trump, in Davos, on January 21, announced that he will not impose tariffs on Europe due to Greenland. Forex traders are reading an uptick in Asian equity markets as good news for the Indian rupee. President Trump has reached an agreement concerning Greenland that will avoid potential confrontations with European nations. In addition, investors are beginning to feel more optimistic about equities as selling pressure has eased due to growing fears of a U.S.-China trade war.
Domestic Equities Support Rebound
Indian equity market trends remain encouraging and further bolster the rupee. The interbank market has exhibited broad-based strength, with improvements seen across the spectrum.
Calm in geopolitical tensions provides a counterbalance to the increasing political risk impacting the global economy. The dollar index increased 0.02% to 98.78.
Ongoing Vulnerabilities Persist
Uncertainties from around the world have left the rupee vulnerable, despite recent strength. There is hope that the ratification of a U.S. trade agreement will stabilise the currency.
External shocks will continue to exist until traders feel comfortable with the risks associated with the volatility of the currency.
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