US Tariffs Push Indian Rupee to Record Lows

The Indian Rupee has slid to near-record lows against the US Dollar, driven primarily by steep US tariffs on key exports such as steel, aluminum and agricultural products. Reduced export earnings and supply-chain disruptions have widened India’s trade deficit and strained foreign exchange reserves. A weaker rupee raises import costs—particularly for crude oil—fuelling inflation and eroding consumer purchasing power. It also increases the rupee cost of servicing foreign-currency debt. Policymakers face a dual challenge: stabilising the currency through monetary interventions and cushioning the economy against rising prices. The Reserve Bank of India may adjust interest rates and deploy forex reserves, while the government explores new trade partnerships and incentives for domestic manufacturing. Traders should monitor currency hedging strategies, diversify holdings and assess exposure to inflation-linked assets. For crypto investors, a depreciating rupee could spur demand for bitcoin and other digital assets as an alternative store of value.