Rupee reaches record low, an atmosphere of fear in the market due to Trump’s decision
New Delhi| The fear of a trade war has increased due to US President Donald Trump’s decision to impose a 25 percent tariff on Canada, Mexico and an additional 10 percent tax on Chinese products. There is an atmosphere of fear regarding this in the markets all over the world. In this environment, the Indian rupee has also fallen by 67 paise to a record low. The Indian rupee was valued at 87.29 against the US dollar in early trade on Monday.
67 paise declined
The Indian currency Rupee is under constant pressure. The demand for dollars has been continuously increasing since the continuous exit of foreign funds from the Indian market and the prominence given to the dollar by oil importing countries. The rupee opened at Rs 87 today on the Interbank Foreign Exchange, but soon fell 67 paise to 87.29. On Friday, the rupee had closed at 86.62 against the dollar. “The beginning of the week saw fluctuations in financial markets as US President Donald Trump continues his threats of tariffs by imposing tariffs on imports from Mexico, Canada and China”, said Amit Pabari, MD, CR Forex Advisors
An atmosphere of fear due to the increasing threat of trade war
Pabari said that ‘there is an atmosphere of risk in the market due to the increasing threat of trade war. Demand for the US dollar has increased and the dollar index is trading at a mark of 109.77, up 1.30 per cent. Trump’s tariff threat led to a surge in the US dollar, pushing the global currency exchange rate to a multi-year low. The euro fell to 1.0224, the Great Britain pound to 1.2261 and the yen to 155.54’
Brent crude, the global oil benchmark, rose 0.71 percent in futures trading to reach US$76.21 a barrel.In the market in domestic equities, the 30-share BSE Sensex was trading at 76,930.07 points, down 575.89 points or 0.74 per cent, while the Nifty was down 206.40 points or 0.88 per cent, at 23,275.75 points. Meanwhile, India’s foreign exchange reserves rose by $5.574 billion to $629.557 billion in the week ending January 24, the Reserve Bank said on Friday.
