USD/INR WEAKENS AMID ESCALATING TRADE WAR TENSIONS
USD/INR WEAKENS AMID ESCALATING TRADE WAR TENSIONS
The Indian rupee (INR) recently depreciated to a record low of 87.29 against the U.S. dollar, influenced by heightened trade tensions stemming from U.S. tariff announcements.
President Donald Trump's decision to impose significant tariffs on imports from Canada, Mexico, and China has intensified fears of a global trade war, leading to increased volatility in currency markets.
In response to the rupee's decline, the RBI intervened in the foreign exchange market, utilizing its foreign currency reserves to stabilize the currency.
The heightened trade tensions have led to increased volatility in the rupee's value, prompting market participants to engage in hedging activities to mitigate currency risk.
The trade war concerns have not only affected currency markets but have also contributed to fluctuations in equity markets and raised inflationary pressures, complicating the economic outlook for India.
