Indian rupee near record low as steep US tariffs bite

Published 02/09/2025, 06:04

Investing.com-- The Indian rupee hovered near a record low on Tuesday, having touched the mark in the previous session, as heavy U.S. tariffs on Indian goods and continued foreign portfolio outflows weighed on the currency.

The rupee’s USD/INR pair rose to as high as 88.34 rupees on Monday before recovering modestly amid likely intervention by the Reserve Bank of India.

On early Tuesday trading, it was trading largely muted at around 87.975 rupees.

The slide comes as U.S. President Donald Trump’s administration doubled tariffs on Indian goods, lifting duties to around 50% on many exports, including textiles, jewelry, footwear, and furniture.

The move has eroded India’s competitiveness in its largest export market and raised concerns about slower economic growth.

Trump said on his Truth Social platform that India had offered to reduce tariffs to zero, calling the bilateral trade relationship “one sided.”

“They have now offered to cut their Tariffs to nothing, but it’s getting late. They should have done so years ago,” Trump wrote.

His remarks came as Prime Minister Narendra Modi appeared alongside Chinese and Russian leaders in recent public forums, signaling strategic alignment in the face of U.S. trade pressure.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.