New Delhi – The direct impact of international trade tensions and recent tariffs imposed by the United States is now becoming visible on the Indian economy. On Friday, in the foreign exchange market, the Indian rupee reached its lowest level ever against the US dollar. Experts believe this decline could worsen due to global trade policies, rising crude oil prices, and capital outflows.

Why Did the Rupee Fall?

  1. Impact of US Tariffs – The United States recently imposed high tariffs on several products imported from Asian countries. This has increased uncertainty in international trade, and investors are pulling money out of emerging economies and moving toward safer options.

  2. Strength of the Dollar – The dollar has strengthened globally following strong economic data from the United States. This has directly affected the rupee and other currencies.

  3. Pressure from Oil Imports – India is a major importer of crude oil. The recent surge in oil prices has increased India’s import bill, putting further pressure on the rupee.

  4. FII Selling – Foreign investors have been continuously withdrawing capital from Indian stock markets, creating an imbalance in the currency market.

Impact on the Market

  • The rupee reached 84.75 against the dollar, its lowest level ever.

  • Declines were also recorded in the Sensex and Nifty, reflecting weak investor sentiment.

  • Mixed impact on import-export companies:

    • Importing companies will be more affected as they will now have to pay more rupees to buy dollars.

    • Exporting companies may benefit from the rupee’s weakness as they will receive higher returns in dollars.

Government and RBI Strategy

  • The government has stated that it is closely monitoring the situation and has assured that measures will be taken soon to restore stability.

  • The Reserve Bank of India (RBI) has intervened in the currency market and attempted to support the rupee by selling dollars.

  • Experts believe that options such as interest rate adjustments or the use of foreign exchange reserves may also be considered.

Impact on the General Public

  • The weakening rupee will directly affect the common person’s pocket.

    • Petrol, diesel, and other imported goods may become more expensive.

    • The cost of foreign education and tourism will increase.

    • Prices of electronic products and gadgets like mobile phones are also likely to rise.

The rupee’s weakness is not only due to domestic economic conditions but is also a result of international pressures. US tariffs have increased pressure on global trade, and demand for the dollar has risen further. If this situation persists for a long time, the Indian economy could face imported inflation and a current account deficit.

US tariffs and global trade tensions have pushed the rupee to a new historic low. The government and RBI must now take effective steps to restore balance. The coming period could be challenging for investors and ordinary citizens, as the rupee’s weakness will directly impact inflation and the cost of living.

New Delhi

New Delhi is the modern capital of India, officially inaugurated in 1931 to replace Calcutta as the seat of the British colonial government. It was designed by British architects Edwin Lutyens and Herbert Baker, featuring wide, tree-lined boulevards and grand government buildings. The city is built just south of the historic Old Delhi, creating a stark contrast between its planned imperial architecture and the ancient Mughal-era monuments.

United States

The United States is a relatively young nation, founded in 1776 after declaring independence from Great Britain. It grew from thirteen original colonies to a global superpower, with a history profoundly shaped by westward expansion, the Civil War, and large-scale immigration. Its culture is a diverse blend of influences from around the world, often expressed through its significant contributions to music, cinema, and technology.

Indian rupee

The Indian rupee is the official currency of India, issued and regulated by the Reserve Bank of India. Its name is derived from the Sanskrit word *rūpya*, meaning ‘wrought silver’ or a coin, and it has a history dating back to ancient India in the 6th century BCE. The modern rupee was decimalized in 1957, following independence from British rule.

US dollar

The US dollar is the official currency of the United States, established by the Coinage Act of 1792 which created the country’s first national mint. It evolved from a system based on Spanish milled dollars and has since become the world’s primary reserve currency, underpinning the global financial system.

Sensex

The term “Sensex” is not a physical place or cultural site, but rather a stock market index. It is the benchmark index of the Bombay Stock Exchange (BSE) in India, officially introduced in 1986 to track the performance of the top 30 financially sound companies. The name is a portmanteau of “Sensitive” and “Index.”

Nifty

I am unable to provide a summary for “Nifty” as it does not refer to a recognized place or cultural site. It is most commonly known as the name of a financial data and software company. Could you please check the spelling or provide more context?

Reserve Bank of India

The Reserve Bank of India (RBI) is India’s central bank and monetary authority, established in 1935 following the recommendations of the Hilton-Young Commission. It was originally privately owned before being nationalized in 1949, and it plays a pivotal role in regulating the country’s currency, credit systems, and monetary policy.

RBI

I am unable to provide a summary for “RBI” as it does not correspond to a widely recognized place or cultural site. The acronym most commonly refers to the Reserve Bank of India, the country’s central bank, which is a financial institution rather than a cultural or historical location.