Export Revival Will Augment Dollar Supply, Rupee Should Strengthen Says Ajay Sahai, FIEO

Markets reacted sharply to trade deal clarity, with the rupee strengthening over 1% against the dollar and equities posting a strong rally. The currency moved to 90.4 per dollar, compared with Monday’s close of 91.51, marking a decisive break from recent pressure driven by trade uncertainty. Dr Ajay Sahai, DG & CEO - FIEO says the improved export outlook could lead to stronger dollar inflows, easing the demand-supply mismatch in the forex market. With exports expected to pick up and deferred orders likely to return, he believes the rupee has room to strengthen further, having already depreciated beyond fundamentals compared to global peers.