The Indian rupee ended stronger on Monday after the latest data showed that the economy grew at a faster pace than in the previous quarter, calming traders amid fresh tariff threats by US President Donald Trump.
The currency strengthened by 15 paise to close at 87.36 against the US dollar, according to Bloomberg data. The rupee closed at 87.51 against the greenback on Friday.
The gross domestic product grew 6.2% over a year earlier in the October-December quarter. This was compared with a revised growth of 5.6% in the July-September quarter.
US President Donald Trump has announced he would impose an additional 10% tariffs on Chinese imports starting March 4. The proposed 25% tariff on Mexican and Canadian goods will also go into effect on that day.
India's economic performance has shown "resilience". Given the confluence of global and domestic factors, the rupee is expected to remain at elevated levels in the near term, according to Amit Pabari, managing director of CR Forex Advisors.
"Investor sentiment remains fragile, particularly as the latest tariff measures announced by the United States add to global economic uncertainties, further strengthening the US dollar and pressuring the rupee," Pabari said.
The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — was 0.41% down at 107.17.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
