Rupee Under Pressure as US Tariff Uncertainty Intensifies
Have you been watching the Rupee today? If you’ve got forex exposure or are planning an overseas trip, the currency markets might be giving you reason to pause. On Tuesday, the Indian Rupee continued its downward slide, trading at ₹87.82 to the dollar. The pressure came from rising dollar demand by importers and ongoing FII (foreign institutional investor) outflows. Currency experts flagged that uncertainty around US tariffs and possible penalties tied to India’s crude oil imports from Russia added to the stress.
KN Dey, a currency expert speaking with ANI, observed, “The Rupee is still in the middle of a storm, trading now at 87.80/81. Interventions from RBI continue, otherwise the Rupee might have breached the 88 level today.”
Are you wondering whether this is just short-term volatility—or the beginning of a bigger trend? As RBI continues to step in, all eyes are now on how global and domestic developments unfold.
Wondering why the Rupee can’t catch a break? Experts point to the uncertainty surrounding US tariffs and penalties as a major culprit. Jateen Trivedi of LKP Securities explains, “Despite minor strength in the dollar index, the key drag remains the 25 per cent tariff imposed by the US, which has kept pressure on the rupee.” Early hopes for Rupee gains quickly faded as bearish sentiment took over. Without clear details on the penalty structure or timeline, traders remain on edge, watching closely for updates from US policy makers to understand what’s next.
In a surprising move, the US recently slapped a 25% tariff on certain Indian goods, escalating trade tensions. This sudden imposition caught markets off guard and has significantly pressured the Rupee. The tariff targets key sectors, affecting export volumes and investor confidence. With no clear roadmap on how or when these tariffs might evolve, uncertainty looms large. Market participants are now bracing for potential ripple effects on India’s trade balance and currency stability as the situation unfolds.
Market observers anticipate heightened volatility ahead of the RBI’s Monetary Policy Committee announcement on Wednesday. KN Dey warned that the Rupee might have crossed ₹88 without RBI intervention, highlighting the central bank’s role in stabilising the currency. Jateen Trivedi confirmed that markets expect the announcement to influence forex movement. Whether RBI maintains its current stance or takes new action, investors will analyze commentary closely. The outcome could determine whether current pressure continues or stabilises.
Experts contend that unless there is clarity on the US penalties and a pickup in capital inflows, the Rupee may remain under near-term stress. Jateen Trivedi affirmed that uncertainty around foreign policy and market flow will continue to exert pressure. Meanwhile, KN Dey emphasized the importance of RBI support in preventing further Rupee depreciation. Traders and investors must watch for any signals of easing in US trade rhetoric or improvement in capital trends. If clarity emerges and flows improve, the currency may recover—but until then, volatility is likely to persist.
(With Inputs From ANI)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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