Rupee weakens further – The Hindu BusinessLine

The Indian rupee (INR) weakened further on Tuesday, opening at 84.7425 per US dollar (USD) against the previous close of 84.6950, amid a host of factors including US President Donald Trump’s threat to impose 100 per cent tariffs on imports from BRICS countries. . If they develop a common currency, there are concerns of slowing domestic growth, and FPI-related outflows, etc.

The Indian currency, which is currently trading at 84.7550, fell by nearly 21 paise to its lifetime low of 84.73 on Monday. Per USD.

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The central bank was believed to have sold dollars to defend the crucial 84.50 level, but this level was broken as the US dollar strengthened against global currencies.

Amit Pabari, MD, CR Forex Advisors, said Trump’s threat to impose 100 per cent tariffs on BRICS countries, including India, if they planned to develop a common currency to rival the US dollar would have a negative impact on the currencies of these countries. Sentiment rose and strengthened the US dollar, leading to further decline in the rupee.

Pabari said that weak economic indicators domestically have increased the rupee’s troubles.

“India’s GDP growth slowed to 5.4 per cent in the second quarter, a two-year low, while inflation rose to 6.21 per cent, dragging down real returns compared with global competitors. This adverse environment has led FIIs to withdraw nearly $14 billion from Indian equity markets since October, putting pressure on the rupee.