The Indian rupee hit a record low of 87.07 against the US dollar on Monday, weakening by 0.5% in early trade. The decline is largely attributed to US President Donald Trump’s recent tariffs on Asian countries, including India’s largest trading partners Mexico and Canada.
Trump issued three executive orders over the weekend, imposing 25% tariffs on Mexican imports and 10% on Chinese goods. These measures have sparked a surge in the US dollar and led to a decline in Asian currencies, including the offshore Chinese yuan, which fell by 0.5% to 7.35 per US dollar.
As a result, traders expect the rupee to continue its downward trend throughout the day. The dollar index has risen by 0.3% to 109.8, further contributing to the decline in Asian currencies.
Source: https://www.reuters.com/markets/currencies/rupee-drops-past-87usd-trump-tariffs-rattle-asian-currencies-2025-02-03