The Indian rupee reached a new record low of 87.9563 against the US dollar on February 10, due to the implementation of US President Donald Trump’s new tariff scheme.
The rupee opened at 87.92 record low today against the dollar. The rupee closed at 87.43 against the dollar on Friday, which shows 49 paise weakness. On 9 February, US President Donald Trump will announce 25% tariff on steel and aluminum on all imports in the US. The effect of which is clearly visible on the rupee today.
Talking to the press on Air Force One on Sunday, Trump said that tariffs would apply to metal imports from all countries. However, he did not say when the tariffs would be applicable. According to Bloomberg, Trump also said that he would announce a mutual (Lessriculation) tariff on the countries that tax him from the US at the end of this week.
After the decision to put the tariff, the dollar index was strengthened and it was seen trading at the level of 108.33. Whereas in the last trading session it was at 108.040. Around 10.23 pm, the dollar index rose 0.22 per cent to 108.28.
In the first RBI MPC meeting held under the leadership of the new central bank governor Sanjay Malhotra, it was reduced by 25 basis points to 6.25 percent to promote the slow economy.
A week after Finance Minister Nirmala Sitharaman presented the budget for FY 2026, interest rates have been cut for the first time in about five years. The RBI has estimated the GDP growth rate of 6.7 percent for the next financial year. Inflation estimates for the current financial year remains unchanged at 4.8 percent.
It may be noted that after the RBI board meeting, Governor Malhotra also talked about the falling level of rupee while addressing the media with Finance Minister Nirmala Sitharaman. He said that RBI does not target a particular level or band and he only intervenes to prevent heavy volatility. He said that the pressure on the rupee is mainly due to Trump’s tariff announcements. Further improvement can be seen in it.
The RBI governor said, “The main reason for the fall in the rupee is tariff announcements and global uncertainty related to Trump. So it is expected that the situation will be cured and will help prevent the rupee decline.”
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