The Indian rupee weakened past ₹87 per US dollar for the first time on Monday (3 February 2025), as Asian currencies slumped following new tariff measures imposed by US President Donald Trump. The tariffs, targeting America’s largest trading partners, triggered a surge in the US dollar, putting additional pressure on emerging market currencies.
In early trading, the rupee declined by 0.5%, reaching a low of ₹87.07 against the dollar. Analysts expect further depreciation throughout the day as market sentiment remains cautious.
Over the weekend, President Trump signed three executive orders imposing significant tariffs on imports from key trading partners. These include a 25% tariff on Mexican and most Canadian imports, alongside a 10% levy on Chinese goods, set to take effect from Tuesday. The US dollar strengthened in response, with the dollar index rising 0.3% to 109.8. Meanwhile, Asian currencies saw widespread declines. The offshore Chinese yuan—a key benchmark for regional currency movements—fell 0.5% to 7.35 per US dollar. With heightened global trade tensions and a strengthening dollar, investors remain wary of further volatility in currency markets, particularly in emerging economies like India.
