As the world's currency markets responded to new trade concerns, the rupee dropped to a record low of Rs 87.07 versus the US dollar on Monday. Following the imposition of fresh tariffs by US President donald trump on important trading partners, which strengthened the US dollar and put pressure on Asian currencies, the drop occurred. Early trading saw a 0.5% decline in the rupee, and traders anticipate more weakening throughout the day.
What caused the rupee to weaken?
Three executive orders that trump enacted over the weekend were the primary cause of the rupee's steep decline. Beginning Tuesday, these directives levied 10% tariffs on Chinese goods and 25% levies on imports from mexico and Canada.
The US dollar has strengthened in value relative to the majority of other world currencies as a result of the new trade restrictions.
Other Asian currencies have also been impacted by the rise of the US dollar. At 109.8, the dollar index, which compares the US dollar to six other major currencies, increased by 0.3%.
A significant Asian currency, the Chinese yuan, also declined by 0.5% to 7.35 to the US dollar. This drop has also placed pressure on the indian currency because the yuan and rupee frequently move in the same way.
What caused the rupee to weaken?
Three executive orders that trump enacted over the weekend were the primary cause of the rupee's steep decline. Beginning Tuesday, these directives levied 10% tariffs on Chinese goods and 25% levies on imports from mexico and Canada.
The US dollar has strengthened in value relative to the majority of other world currencies as a result of the new trade restrictions.
Other Asian currencies have also been impacted by the rise of the US dollar. At 109.8, the dollar index, which compares the US dollar to six other major currencies, increased by 0.3%.
A significant Asian currency, the Chinese yuan, also declined by 0.5% to 7.35 to the US dollar. This drop has also placed pressure on the indian currency because the yuan and rupee frequently move in the same way.
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