India’s rupee traded around 87.1 per USD on Wednesday, holding its biggest gain in over a month and staying near a three-week high. The improvement came as easing US tariff risks and optimism over New Delhi’s tax reforms boosted sentiment. Hopes for a Russia-Ukraine peace deal, following President Trump’s pledge of US security guarantees for Kyiv, also contributed to improved risk appetite. Domestically, Prime Minister Modi’s proposal to cut Goods and Services Tax, the most sweeping reform in eight years, reinforced expectations for stronger consumption and revived foreign portfolio inflows. The RBI’s interventions and the unwinding of long dollar positions helped stabilize the currency despite broader dollar strength.