Indian Rupee Plummets to Historic Low

On Monday, the Indian Rupee experienced a significant drop, reaching a record low of 87.28 against the US dollar. This decline was primarily due to the announcement of tariffs on imports by US President Donald Trump, which has sparked fears of a potential trade war. The Rupee closed at 87.19, marking a 58 paise drop from its previous close, and its largest single-day decline in two weeks.

Sensex and Nifty Take a Hit

Following the Rupee's fall, the Sensex dropped by 319.2 points (0.41%) to 77,186.7, and the Nifty index fell by 121.1 points (0.52%) to 23,361. The market's downturn reflects the broader impact of US tariffs on global trade and currency markets.

Global Currency and Market Reactions

Alongside the Rupee, other Asian currencies and the Mexican peso also saw significant drops. The dollar index rose by 1.01% to 109.46, indicating a strong dollar trend. Brent crude prices increased by 1.41%, reaching $76.74 per barrel, while industrial metals suffered losses.

Expert Opinions and Future Outlook

Experts like Ashhish Vaidya from DBS Bank and Madan Sabnavis from Bank of Baroda have expressed concerns over the US tariffs' impact on global trade and the Rupee's future. The market is closely watching the Reserve Bank of India's (RBI) next moves, as its actions could significantly influence the Rupee's direction and market stability.