Rupee slumps to record low vs Dollar after US tariffs on India take effect

The rupee dropped 0.4% to 87.9763 per US dollar, breaching its previous all-time low of 87.9563 in February, after the US tariffs came into effect.

The Indian rupee slumped to a record low versus the US dollar on worries over the impact of 50% US tariffs on the country’s economic growth and corporate earnings.

The rupee fell to an all-time low on Wednesday, January 8, 2025, due to a rise in dollar rates and weakness in domestic equities (Representational Image/Pixabay)

The currency dropped 0.4% to 87.9763 per dollar, breaching its previous all-time low of 87.9563 in February. The rupee is Asia’s worst-performing currency this year, pressured by persistent foreign outflows from local equities.

The Indian currency is under pressure as new US tariffs took effect this week, targeting export-intensive industries such as textiles, footwear and jewelry. Citigroup Inc. estimates the tariffs could cut 0.6–0.8 percentage points from India’s annual growth.