Rupee Set to Open Weaker as Trump Threatens 25% Tariff on Exports
The Indian rupee is likely to open weaker on Thursday, as U.S. President Trump’s threat to impose a 25% tariff on Indian exports has sparked concerns among traders. This move is seen as a major blow to the Indian economy, which is already reeling under the pressure of a global slowdown and a sharp decline in rupee value.
As per recent reports, the U.S. President has threatened to impose a 25% tariff on Indian exports, which could have a significant impact on the Indian economy. This move is seen as a major setback for the Indian government, which has been trying to boost exports to offset the impact of a decline in domestic demand.
The rupee has been under pressure lately, and the threat of a 25% tariff on Indian exports has added to the woes. The currency has already fallen to a record low of 87.95, and traders are expecting it to open weaker on Thursday. The 1-month NDF suggests an opening range of 87.66-87.69, versus 87.42 previously.
The Reserve Bank of India (RBI) may intervene in the foreign exchange market to stabilize the rupee, as it has done in the past. The central bank has been trying to manage the currency’s volatility, and it may take steps to prevent a sharp decline in the rupee’s value.
However, the threat of a 25% tariff on Indian exports is a major concern for the RBI, as it could lead to a sharp decline in exports and a widening of the trade deficit. The central bank may have to take steps to prevent a sharp decline in the rupee’s value, as it could have a negative impact on the economy.
The Indian government has been trying to boost exports to offset the impact of a decline in domestic demand. The government has been offering incentives and subsidies to exporters, and it has also been trying to improve the business environment. However, the threat of a 25% tariff on Indian exports is a major setback for the government, as it could lead to a decline in exports and a widening of the trade deficit.
The rupee’s decline could also have a negative impact on the economy, as it could lead to a decline in consumer spending and a decline in investment. The central bank may have to take steps to prevent a sharp decline in the rupee’s value, as it could have a negative impact on the economy.
In conclusion, the rupee is likely to open weaker on Thursday, as the threat of a 25% tariff on Indian exports has sparked concerns among traders. The RBI may intervene in the foreign exchange market to stabilize the rupee, as it has done in the past. However, the threat of a 25% tariff on Indian exports is a major concern for the RBI, as it could lead to a sharp decline in exports and a widening of the trade deficit.
