Indian rupee hits record low against US dollar amid fears of Trump’s tariff hikes
The Indian rupee plummeted to an all-time low against the US dollar due to fears of potential tariff increases by the Trump administration. Despite India’s improving GDP figures over the past six quarters, the Reserve Bank of India has stepped in to sell dollars in an effort to stabilize the rupee’s exchange rate.
Source Bloomberg
The rupee continues to weaken amid mounting trade tensions between the US and various global economies. India, potentially a key US ally in Asia against China, faces challenges both internally and externally. While economic growth has shown positive trends, market cohesion and political risks are slowing currency stabilization.
The future outlook will largely depend on trade policy moves by both India and the US. Should tariff pressures intensify, the rupee may come under further strain, leading to heightened uncertainty in the region.
