Shafaqna India: The rupee fell by 67 paise to hit a record low of 87.29 against the US dollar in early trading on Monday, as fears of a global trade war were triggered by Donald Trump’s tariffs on Canada, Mexico, and China.
Trump imposed a 25% tariff on Canada and Mexico and a 10% tariff on China, marking the first move in what could escalate into a damaging global trade conflict, according to forex traders.
The rupee remained under pressure due to ongoing foreign fund outflows and the strengthening of the US dollar in global markets, fueled by high demand for dollars from oil importers and a weak risk appetite, they added.
In the interbank foreign exchange market, the rupee opened at 87 and dropped to 87.29 against the greenback, a 67 paise decline from its previous closing. On Friday, the rupee had ended flat at 86.62 against the dollar.
“The start of the week saw financial markets on edge as US President Donald Trump followed through on his tariff threats, imposing duties on imports from Mexico, Canada, and China,” said Amit Pabari, MD of CR Forex Advisors.
