Rupee Plunges to Historic Low of ₹87.29 as Global Trade Tensions Escalate

The Indian rupee hit an unprecedented low of ₹87.29 against the US dollar, marking a significant decline despite recent dollar index fluctuations. The dramatic fall was triggered by US President Trump's announcement of new tariffs on Canada, Mexico, and China, sparking fears of an imminent global trade war. Foreign institutional investors' substantial selloff of $11 billion in Q3 FY25 has intensified the pressure on the rupee. The currency's weakness is further compounded by India's widening trade deficit, which is projected to grow 18% over FY24. Market analysts suggest this decline could impact imported inflation and corporate balance sheets significantly.

Source: Indian Express Financial Markets Report