Rupee opened on a weak note on Wednesday, slipping 22 paise to 90.54 against the US dollar, after recording a strong rally in the previous session.The currency recorded a strong performance on Tuesday, soaring 122 paise, or 1.33%, to settle at 90.27 against the dollar. The spike came after India and the United States announced reaching a trade agreement, as the news positioned rupee as Asia’s best performing currency.Forex market participants said that the currency climbed to its strongest level in nearly two-and-a-half weeks and rallied by almost 1.5% on the back of the deal. The momentum was also supported by Dalal Street’s strong performance, which gained about 2.7%, along with softer crude oil prices and expectations of foreign inflows.As part of the agreement, the US will lower reciprocal tariffs on Indian goods to 18 per cent, a rate lower than those applicable to countries such as China, Bangladesh and Vietnam.Prime Minister Narendra Modi on Tuesday called the India-US trade agreement a “big decision” that would benefit everyone in the country, adding that his government consistently works in the national interest.Traders said the deal could encourage the return of foreign institutional investors, noting that an improvement in capital flows in calendar year 2026 may help ease pressure on the rupee.In other market developments, the dollar index, which tracks the US currency against six major peers, was down 0.05% at 97.57. Brent crude futures edged lower by 0.14% to $66.18 a barrel.
