Rupee Crashes to All-Time Low: Trump Tariffs Weigh Heavy

The Indian rupee slipped to a fresh all-time low on Friday, falling 35 paise to touch 87.98 against the US dollar during intraday trade. The local currency had closed at 87.63 on Thursday. It opened weaker in the morning at 87.69 and kept losing ground through the day.

The fall comes amid global uncertainty after US President Donald Trump announced fresh tariffs that rattled markets. Investors rushed to the safety of the dollar, pushing other currencies, including the rupee, lower. Analysts say foreign outflows from Indian stocks also added pressure, as overseas investors booked profits and moved money abroad.

A weaker rupee makes imports costlier, especially crude oil, which India relies on heavily. Higher oil prices can trickle down into fuel, transport, and other goods, raising inflation concerns for households. On the flip side, exporters such as IT and pharmaceutical companies may benefit, as their dollar earnings will fetch higher returns when converted into rupees.

Equity markets mirrored the pressure, with the Sensex and Nifty both opening in the red. Traders said the Reserve Bank of India was monitoring the situation closely, though any direct intervention is expected only if volatility increases sharply.

With the rupee now below 88 to the dollar, analysts believe it may remain under pressure unless global conditions ease. For everyday consumers, the immediate worry will be rising costs of fuel and imported items if the weakness persists in the coming weeks.