Indian Rupee Hits Record Low Amid Trump Tariffs and Trade War Fears

INIndia|

The Indian rupee depreciated by 67 paise to a record low of 87.29 against the US dollar on February 3, 2025, following the imposition of tariffs by US President Donald Trump on imports from Canada, Mexico, and China. Forex traders noted that the escalation in trade tensions sparked fears of a broader global trade war, contributing to the rupee's decline.

Opening at 87.00, the rupee’s value fell significantly, reflecting sustained foreign fund outflows and the strength of the US dollar amidst high demand from oil importers. This downward trend has been exacerbated by a weak risk appetite among investors. According to Amit Pabari, Managing Director of CR Forex Advisors, the recent tariffs have created anxiety in financial markets, increasing the demand for safe-haven currencies such as the US dollar, which has also seen a rise on the dollar index.

Additionally, the domestic equity market showed a decrease, with the BSE Sensex down 0.74 percent at 76,930.07 points. Market analysts suggest that the Reserve Bank of India may intervene to stabilize the rupee's depreciation.

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