This is due to the new threats of US president Donald Trump about increasing tariffs for Indian goods.
The Indian Rupee may now drop below 88 for the US dollar, reaching a minimum of history. This is due to the new threats of US president Donald Trump about increasing tariffs for Indian goods, Reuters reports.
It has been reported that Trump has again accused India for buying and resale of Russia’s oil, threatening to “significantly increase tariffs” in its goods. India’s Ministry of Foreign Affairs replied that the country would “take all the necessary measures to protect national interests and economic security.”
According to analysts at the MUFG Bank, “It is not yet clear whether these attacks from the United States are part of negotiations in negotiations aimed at changing India’s position in the war in Ukraine.”
As you know, last week Trump had already introduced 25%tariffs for imports from India – this is more than expected. Negotiations on a trade agreement between countries are also stuck.
Against the rear of the moods, the rupee weakened despite the general decline of the dollar. On Monday, India’s money could not maintain an intraday increase at 87.20 and dropped again.
“Today, a difficult day for Rupia is expected, but Trump’s new threat has only increased pressure,” said the senior businessman of one of the private banks.
According to him, most likely, the Reserve Bank of India will intervene to prevent uncontrolled lowering against the background of confrontation with the United States. There is also a risk of increasing foreign investment from the Indian stock market.
Note that this year in February, the US dollar in Indian Rupia for the first time in history exceeded 87 Rupees for $ 1 against the back of Asian money and shares after President Donald Trump introduced import duties against Canada, Mexico and China.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.