Rupee hits record low of 87.29 against US dollar in early trade as Trump tariffs stoke trade war fears
By : Sandhya
The rupee fell by 67 paise to hit record low of 87.29 against the US dollar in early trade on Monday, February 3, 2025, a day after US President Donald Trump's tariffs on Canada, Mexico and China that triggered fears of a broad trade war. At the interbank foreign exchange, the rupee opened at 87.00 to the dollar and slipped further to 87.29 in initial deals. Meanwhile, it settled flat at 86.62 against the American currency on Friday.
Trump slapped Canada and Mexico with 25% duties and China with a 10% duty. This was the first strike in what could be a destructive global trade war, the report quoted forex traders as having said. They added that the rupee also continued to face pressure due to sustained foreign fund outflows worth ₹1,327.09 crore on Saturday alone, and the broad strength of the American currency in the overseas markets due to dollar demand from oil importers and weak risk appetite.
