Amid escalating trade tensions sparked by President Trump s tariffs, the U.S. dollar weakened against major currencies, while China s offshore yuan plummeted to a record low. Investors sought safe-haven assets like the yen and Swiss franc, fearing a potential global recession.

British stocks rebounded strongly on Tuesday, fueled by hopes of softened U.S. import tariffs, with the FTSE 100 experiencing its largest daily increase since March 2022. Finance Minister Rachel Reeves is set to meet with the U.S. Treasury Secretary amid discussions for a new economic partnership aimed at reducing tariff levies. However, uncertainty remains due to ongoing U.S.

European shares rebounded from recent lows as investors reacted to the ongoing trade tensions and potential counter-tariffs. The STOXX 600 index experienced a significant increase, driven by gains in various sectors, including defense, financials, and healthcare. While concerns about a global recession persist, analysts suggest European equities remain attractive due to valuations and potential stimulus measures.

The U.S. Justice Department is disbanding its National Cryptocurrency Enforcement Team and ordering prosecutors to narrow crypto investigations to focus on drug cartels and terrorist groups, according to a memo seen by Reuters.

Indian rupee:The Indian rupee closed at 86.26 on Tuesday, down nearly 0.5% from Monday amid strong dollar demand and regional currency retreat. Rising volatility, muted RBI presence, and global trade tensions added pressure, with sectors bracing for earnings impact.

RBI OMO purchase:The RBI’s second open market operation (OMO) in FY26 attracted bids worth ₹70,144 crore—over three times the ₹20,000 crore on offer—indicating robust demand as traders sought profit amid higher bond prices. Liquidity infusion may continue through FY26.

Vodafone Idea has allotted ₹36,950 crore worth of equity shares to the Government of India, raising its stake to 48.99%, following the conversion of deferred spectrum dues into equity. Sebi exempted compliance rules for this move, citing public interest.

Shares of U.S. Steel are hitting a 52-week high after President Donald Trump ordered a new national security review of Nippon Steel s proposed bid to buy U.S. Steel for nearly $15 billion.

The Nifty Bank index closed 1.31 per cent up at 50511.0.