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Rupee Hits Record Low of 87.29 Amid Trump Tariffs and Global Market Jitters

Rupee Hits Record Low of 87.29 Amid Trump Tariffs and Global Market Jitters

 

The Indian rupee plunged 67 paise to hit an all-time low of 87.29 against the US dollar in early trade on Monday, as fears of a widening global trade war intensified following new tariffs imposed by former US President Donald Trump.

Trump's decision to slap 25% tariffs on imports from Canada and Mexico and a 10% duty on Chinese goods has sparked volatility in financial markets. Forex traders noted that the rupee continues to face pressure due to persistent foreign fund outflows, rising demand for the US dollar from oil importers, and overall risk aversion in global markets.

At the interbank foreign exchange, the rupee opened at 87.00 before slipping further to 87.29, marking a sharp drop from Friday’s closing rate of 86.62.

“The escalating trade war has fueled investor concerns, pushing safe-haven demand for the US dollar, which surged to a multi-year high of 109.77,” said Amit Pabari, MD of CR Forex Advisors.

Global currency markets also reflected heightened volatility, with the euro falling to 1.0224, the British pound to 1.2261, and the Japanese yen sliding to 155.54 against the dollar. Among Asian currencies, the Chinese yuan depreciated to 7.3551, the Indonesian rupiah to 16,448, and the South Korean won to 1,470.

Meanwhile, Brent crude oil prices rose 0.71% to $76.21 per barrel, adding further pressure on India’s import bill.

The Indian stock market also saw a sharp decline, with the BSE Sensex dropping 575 points to 76,930, while the NSE Nifty fell by 206 points to 23,275.

Experts anticipate the Reserve Bank of India (RBI) may intervene to stabilize the rupee and mitigate excessive volatility.

Rupee Hits Record Low of 87.29 Amid Trump Tariffs and Global Market Jitters

Rupee Hits Record Low of 87.29 Amid Trump Tariffs and Global Market Jitters
 

The Indian rupee plunged 67 paise to hit an all-time low of 87.29 against the US dollar in early trade on Monday, as fears of a widening global trade war intensified following new tariffs imposed by former US President Donald Trump.

Trump's decision to slap 25% tariffs on imports from Canada and Mexico and a 10% duty on Chinese goods has sparked volatility in financial markets. Forex traders noted that the rupee continues to face pressure due to persistent foreign fund outflows, rising demand for the US dollar from oil importers, and overall risk aversion in global markets.

At the interbank foreign exchange, the rupee opened at 87.00 before slipping further to 87.29, marking a sharp drop from Friday’s closing rate of 86.62.

“The escalating trade war has fueled investor concerns, pushing safe-haven demand for the US dollar, which surged to a multi-year high of 109.77,” said Amit Pabari, MD of CR Forex Advisors.

Global currency markets also reflected heightened volatility, with the euro falling to 1.0224, the British pound to 1.2261, and the Japanese yen sliding to 155.54 against the dollar. Among Asian currencies, the Chinese yuan depreciated to 7.3551, the Indonesian rupiah to 16,448, and the South Korean won to 1,470.

Meanwhile, Brent crude oil prices rose 0.71% to $76.21 per barrel, adding further pressure on India’s import bill.

The Indian stock market also saw a sharp decline, with the BSE Sensex dropping 575 points to 76,930, while the NSE Nifty fell by 206 points to 23,275.

Experts anticipate the Reserve Bank of India (RBI) may intervene to stabilize the rupee and mitigate excessive volatility.

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