Rupee hits record low of 88.4425 against the dollar as tariff and trade uncertainty weigh
The Indian rupee fell to a historic low of 88.4425 against the US dollar as rising trade uncertainties and global tariff tensions pressured emerging market currencies. Investors are showing caution due to concerns over international trade policies, fluctuating crude oil prices, and persistent demand for the dollar from importers and corporations. Market analysts suggest that global risk aversion, coupled with strengthening US Treasury yields, has intensified pressure on the rupee. Domestic factors, such as inflation risks and a widening trade deficit, are adding to the downward momentum. The Reserve Bank of India is closely monitoring the situation and may step in with measures to stabilize currency volatility if needed. Economists warn that a weaker rupee could impact India’s import costs, particularly energy, and widen the fiscal burden. Going forward, investor sentiment will depend heavily on global trade negotiations and central bank policies.
The Key points
- Rupee touched record low of 88.4425 per US dollar.
- Global tariff and trade tensions fueled currency weakness.
- Dollar demand from importers and corporates increased pressure.
- Rising US Treasury yields strengthened the greenback globally.
- Inflation risks added further strain on domestic sentiment.
- Widening trade deficit contributed to rupee depreciation.
- Crude oil price fluctuations impacted currency outlook.
- RBI expected to monitor and manage sharp volatility.
- Weaker rupee raises energy and import cost concerns.
- Future trends depend on trade talks and monetary policy.
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