Market News
Indian rupee slumps on Trump tariff jolt, central bank likely cushions fall - REUTERS
MUMBAI, July 31 (Reuters) - The Indian rupee fell to an over five-month low on Thursday, hurt by U.S. President Donald Trump's threat of a 25% tariff on the Asian country's exports, and the central bank likely stepped in to arrest its fall towards a record low, traders said.
The rupee slipped to 87.74 per U.S. dollar before paring losses to quote at 87.56 as of 11:30 a.m. IST, down 0.2% on the day.
Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here.
The currency, within touching distance of its all-time low of 87.95 hit in February, is down 2% so far this year, making it one of the worst Asian performers.
On Wednesday, President Trump said the United States is still negotiating with India on trade after announcing earlier in the day that the U.S. would impose a 25% tariff and unspecified penalties on goods imported from the country starting Friday.
The Indian government said it is studying the implications of Trump's announcements and added it remains dedicated to securing a fair trade deal.
Analysts reckon that India-U.S. trade negotiations may yield a lower levy.
"The key for markets and our forecast profile for INR is whether a trade deal between India and U.S. is delayed but not denied," Michael Wan, senior currency analyst at MUFG said in a note.
