The Indian currency, the rupee, plunged by 67 paise to a record low of 87.29 against the US dollar in early trade on Monday, 3 February, after Trump’s tariffs on Canada, Mexico, and China triggered fears of a broader trade war.
Asian currencies and equities also slumped as a result of the tariffs, which have sparked fears of a trade war.
Currency market experts said the rupee is expected to stay under pressure over the next few weeks as the macro-economic factors looked stacked up against the Indian currency.
With the sharp plunge on Monday, the Indian rupee (INR) has fallen almost 4 per cent since October 2024.
The sharp fall in the rupee was mainly triggered by three executive orders signed by Trump over the weekend, imposing 25 per cent tariffs on Mexican and Canadian imports and 10 per cent tariffs on goods from China, starting Tuesday.
The new trade restrictions have boosted the value of the US dollar, making it stronger against most global currencies, analysts said.
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