Rupee falls all-time low to 88.33 against US dollar amid Trumps tariffs
The drop also followed the US decision to hike tariffs on imports, heightening concerns over India’s trade and fiscal outlook.
The rupee fell to 88.33 against the US dollar in Monday’s trading, slipping past its previous record low of 88.3075 set last Friday. Analysts noted that the decline extended the downward pressure seen late last week, with traders increasing short positions on the currency.
The drop also followed the US decision to hike tariffs on imports, heightening concerns over India’s trade and fiscal outlook.
US Treasury Secretary Scott Bessent had earlier dismissed the rupee’s potential as a global currency. Asked on Fox News whether he worried about India shifting trade to the rupee instead of the dollar, Bessent quipped, “There are many things I worry about. The rupee becoming a reserve currency is not one of them.”
The U.S. tariffs are likely to shave off 60-80 basis points from India's GDP growth if they stay in place for a year, economists have said, potentially adding pressure on an already slowing economy.
India's central bank currently expects the economy to grow by 6.5% in the current financial year that ends on March 31.