New Delhi, Feb 10 (EFE).- The Indian rupee hit a record low on Monday, reaching 87.95 per dollar at the opening of the day, weighed down by the latest tariff threats announced by US President Donald Trump.
In its daily analysis, financial consultancy Eforex India said that the rupee opened weak on Monday, following the losses of Asian currencies after Trump said he will introduce more tariffs, thereby increasing the risks of a possible trade war.
Trump said on Sunday, US time, that he will announce reciprocal tariffs on trading partners on Tuesday or Wednesday, and tariffs of 25 percent on all imports of steel and aluminum on Monday.
Although Indian exports of these two materials to the US do not represent a large proportion of bilateral trade, other items from India could be affected by the new tariffs that Washington announces this week.
The fall of the Indian rupee comes days after the currency registered a small rebound on Friday after India’s regulatory body, the Reserve Bank of India, lowered the interest rate for the first time in five years by 25 basis points, to 6.25 percent.
Since one dollar was equivalent to 63.85 rupees on Jan. 1, 2018, the Indian currency has not stopped devaluing, despite having slowed its fall since mid-2022. EFE
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