Rupee hits record low amid Trump tariff threat
The Indian rupee just closed at a record low of 87.5950 against the US dollar, dropping over 2% this month—the sharpest monthly fall since September 2022.
This slide comes after a threat from US President Donald Trump of a hefty 25% tariff on Indian exports starting August 1.
Foreign investments leaving India
A weaker rupee means imports get pricier, so everyday items and tech could cost more soon.
Stock markets felt the hit too, with Nifty 50 and Sensex dipping before bouncing back a bit.
Plus, $2 billion in foreign investments left India this month—never a great sign for confidence.
Analysts warn of further fall
It's not just tariffs: global investors are pulling out money, Asian currencies are under pressure from weak Chinese data, and even RBI's efforts haven't reversed the trend.
Analysts say if things don't stabilize, we might see the rupee falling further into early next year.