Rupee Falls to Record Low Amid US Trade Tensions

Rupee Falls to Record Low Amid US Trade Tensions
………………..

The Indian rupee hit an all-time low, closing 22 paise weaker at 87.88 against the US dollar on Tuesday, as reported by PTI. The decline came amid heightened trade tensions after US President Donald Trump threatened to raise tariffs on Indian goods over New Delhi’s continued purchases of Russian oil. Last week, the US imposed a 25% duty on all Indian imports.

Forex analysts warned the rupee could weaken further due to uncertainty over an India-US trade deal, foreign fund outflows, and subdued domestic equities. The Reserve Bank of India is expected to announce its monetary policy decision on Wednesday, with markets watching for possible rate changes.

Brent crude prices eased to $68.09 per barrel, offering some relief, while the dollar index rose 0.18% to 98.68. The BSE Sensex fell 308 points to 80,710, and the Nifty declined 73 points to 24,649. Foreign institutional investors sold ₹22.48 crore worth of equities.