Rupee fell 22 paise to 86.44 against dollar, impact of Trump’s Tariff War
New Delhi:
Amidst the strength of the American currency in the foreign market and weakness in the domestic stock market, the rupee fell by 22 paise to 86.44 per dollar in early trade on Monday, January 27. Forex traders said that the Indian rupee had strengthened somewhat on Friday, but the rupee opened with a decline on Monday amid uncertainties over US President Donald Trump’s tariff decision.
Apart from this, weakness was also seen in the Indian stock market, which increased the pressure on the rupee.
In the interbank foreign exchange market, the rupee opened at 86.35 against the American currency and then slipped to 86.44 per dollar, which shows a decline of 22 paise from the previous closing price. Earlier on Friday, the rupee had strengthened by 22 paise and closed at 86.22 against the US dollar.
Dollar index rises
During this period, the dollar index, which measures the strength of the US dollar against six major currencies, was up 0.21 percent at 107.67. This increase has come after US President Donald Trump threatened to impose 25 percent tariff on Colombia. At the same time, the international standard Brent crude fell by 0.57 percent at $ 78.05 per barrel.
Trump threatens to impose tariffs and sanctions on Colombia
US President Donald Trump has threatened to impose tariffs and sanctions on Colombia (US-Colombia tariff war), after which the dollar has strengthened. The dollar had weakened last week as the Trump administration appeared less likely to impose tariffs, but now these concerns have increased again. Trump has said that he will impose strict tariffs and visa restrictions on Colombia.
According to stock market data, foreign institutional investors (FIIs) were sellers on Friday and sold shares worth a net Rs 2,758.49 crore.
