The rupee value dropped 19 paise to reach 85.63 against the US dollar during early Monday trading because of worldwide trade tensions and a major stock market collapse. The rupee value declined even though crude prices dropped and the US dollar weakened because investors kept removing funds from the market.
The rupee value at the interbank exchange dropped to 85.63 from its previous close of 85.44 on Friday before reaching 85.79 at the start of the day. The rupee experienced its second consecutive day of depreciation after losing 14 paise due to US tariffs imposed on 60 countries. China’s 34% retaliatory duty sparked fears of a trade war.
The Reserve Bank of India has started its monetary policy meeting which attracts all participants’ attention. The central bank will announce its interest rate decision on Wednesday which will increase market volatility because investors need clarification.
The dollar index decreased 0.05% to 102.71 but failed to boost the rupee value. Brent crude prices declined by 2.73% to $63.79 per barrel because of Trump’s tariffs and OPEC’s increased production rate.
The domestic equity markets experienced a severe downturn as the Sensex dropped 3,014 points while the Nifty lost more than 1,000 points. Foreign investors sold ₹3,483.98 crore which intensified the sell-off because the rupee value declined with international market pressures.
