Trump’s tariffs shake Indian economy, rupee crashes to lowest level

International Desk :

India’s economy is reeling under pressure as U.S. President Donald Trump imposes a 50 percent tariff on Indian exports. With its largest export market under threat, the impact is being felt across both the currency and stock market. The Indian rupee plunges to a record low.
On Tuesday, trading opens with the rupee slipping another six paisa against the U.S. dollar, standing at 88.16. Continuous foreign fund outflows and growing demand for dollars keep the rupee under strain.
Forex traders say the rupee touches a record low of 88.33 against the dollar on Monday before recovering slightly to close at 88.10. Analysts note that Washington’s tariff hike is eroding the competitiveness of Indian exports, dragging down both the rupee and equities.
In just three sessions, foreign investors pull out nearly $2.4 billion from Indian stock markets.
Amit Pabari, Managing Director of CR Forex Advisors, says, “Such heavy outflows are not only squeezing the rupee but also clouding short-term investment sentiment.”
He adds that 88.50 now acts as a major resistance level for the rupee, while 87.50 serves as support. But with U.S. trade policy still uncertain, the risks remain tilted to the downside.
Meanwhile, the U.S. dollar index rises 0.08 percent to 97.84. Global crude markets also climb, with Brent crude up 0.44 percent at \$68.45 per barrel.