New Delhi:
The rupee has recorded the biggest decline ever against the dollar. Today, for the first time, the rupee slipped below the level of 87. The rupee closed at 86.61 on Friday, but today the market fell by 41 paise to 87.02, which was the weakest start after February 2023.
In early trade, the rupee further dives and broke 54 paise to reach the lowest level of 87.16.
Trump’s ‘Tariff War’ stir in rupee
The dollar has strengthened due to the tariff policy of US President Donald Trump, which affected many currency of the world including the rupee. The dollar index has jumped 1.4% to 109.84. At the same time, the rupee has been a continuous weakness for the last 3-4 months and has fallen by 2.78% in 2024 so far.
Trump has imposed new tariffs on China, Canada and Mexico, which has increased the concern of global trade war. This decision has increased further pressure on the rupee. Now the question is arising whether Trump will impose 10% tax on all imported goods? If this happens, India will also be affected, because India exports many things to America.
What will be the effect on India’s economy?
However, Chief Economic Advisor V Anant Nageswaran says that it is too early to say how much the US tariff will affect the rupee. He said that the budget has been cut in the budget, so that investment in private sector will be encouraged. Apart from this, the government hopes that the real impact of the American tariff will be seen in the financial market.
Currency of other countries also affected badly
Like the rupee, there has been a tremendous decline in the currency of China, Mexico and Canada. According to the reports, China’s currency yuan reached a record low in offshore trading on Monday. Mexico’s peso and Canada dollars have also come into the weakest position as compared to many years. Due to this, the possibility of increasing trade war has deepened.