Indian Rupee Slides to Record Low
The Indian rupee depreciated to approximately 88.25 against the US dollar on Friday, reaching a new record low. This decline is primarily attributed to persistent concerns over significant US tariffs on Indian exports. Earlier this week, the United States imposed an additional 25% duty on imports associated with Russian oil purchases, effectively increasing the total tariffs to 50%. This situation has intensified worries about the global competitiveness of Indian products. Further exacerbating the issue, foreign investors have continued to sell off equities for the fourth consecutive session, with nearly Rs. 3,856.51 crores withdrawn so far this month. In its latest bulletin, the Reserve Bank of India highlighted potential downside risks posed by US trade actions, although it noted that strong rural demand and stable consumption might provide some relief. Investors are now focused on India’s Q2 GDP figures, anticipated to decelerate to a growth rate of 6.6% from the previous 7.4%, as well as on US personal consumption expenditures (PCE) inflation data, which could influence the Federal Reserve’s forthcoming decisions.
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