The Indian rupee hit a new record low of 87.29 against the US dollar on February 3, 2025, as concerns over a global trade war fueled a surge in the greenback. The sharp depreciation follows US President Donald Trump’s decision to impose new tariffs on imports from Mexico, Canada, and China, further escalating trade tensions worldwide.
The ripple effect was felt across Indian markets, with the Nifty 50 index sliding 0.93% to 23,265.1 points, and the BSE Sensex losing 0.81%, settling at 76,874.54. The broader Asian market also took a hit, with the MSCI Asia ex-Japan index dipping by 3%.
This dramatic fall in the rupee, coupled with the market downturn, highlights the growing economic uncertainty as the global trade conflict intensifies. Analysts warn that continued tariff disputes could have lasting effects on India’s economy and currency stability.
