The Indian rupee plunged 67 paise to a record low of 87.29 against the US dollar in...  

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Rupee Hits Record Low of 87.29 Against Dollar Amid Trump Tariffs

Rupee Hits Record Low of 87.29 Against Dollar Amid Trump Tariffs
The Indian rupee plunged 67 paise to a record low of 87.29 against the US dollar in early trading on Monday, following the imposition of tariffs by former President Donald Trump on Canada, Mexico, and China. This move has sparked fears of a potential global trade war, impacting forex markets significantly.
 
Trump's tariffs include a 25% duty on imports from Canada and Mexico and a 10% duty on Chinese goods, marking the beginning of what traders warn could escalate into a destructive trade conflict. The rupee opened at 87.00 but quickly fell to 87.29, reflecting ongoing pressure from foreign fund outflows and the strong demand for dollars from oil importers.
 
Market analysts noted that the escalating trade tensions have heightened risk aversion among investors, driving safe-haven demand for the US dollar, which has surged to levels not seen in years. The dollar index rose by 1.30% to 109.77, while other currencies like the Euro and Yen also experienced declines.
 
In response to these developments, the Indian government is expected to intervene in forex markets to stabilize the rupee. Meanwhile, the domestic equity market also faced declines, with the BSE Sensex dropping significantly amid investor concerns over economic stability.
 

Despite the challenges posed by Trump's tariffs and their impact on the rupee, India's foreign exchange reserves saw a temporary increase recently, reaching $629.557 billion as of January 24, 2025. However, sustained volatility in the rupee remains a concern for the Indian economy moving forward. 

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