After President Donald Trump imposed tariffs on products from Canada, Mexico, and China, the Indian rupee has fallen sharply, hitting its lowest point ever.
On Monday, the rupee dropped by 67 paise, reaching 87.29 against the U.S. dollar.
According to Gulf News, Trump’s decision to place a 25% tariff on goods from both Canada and Mexico, along with a 10% tariff on Chinese products, has raised fears of a global trade war.
These changes are already being felt in the markets, with the Indian rupee weakening.
The rupee had been more stable just last Friday, trading at 86.62 per dollar.
The Indian rupee had experienced a similar drop last year in April, when it hit 83.53 rupees per dollar.
Back then, concerns about potential conflict in the Middle East led to a stronger U.S. dollar. Experts believe that the rising price of crude oil worldwide is also contributing to the rupee’s fall.
Since Trump’s return to office, the U.S. dollar has strengthened, and the U.S. stock market has been doing well.
Anshul Chandak, Head of Treasury at RBL Bank, told Reuters that this trend could continue for another 6 to 8 weeks, possibly causing more foreign investments to pull out of India.
It’s not just the rupee that’s being affected. Trump`s tariff policies are also having a negative impact on India’s stock market.
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