The Indian rupee has been badly affected by the US high tariff and is falling down against the dollar. The US tariff is going to be implemented from August 27, after which Indian goods will be charged a total of 50 percent. Indian currency has been under pressure since the notice was issued by Washington.
Rupee under pressure
On the second trading day of the week, the rupee weakened by 22 paise to 87.88 against the dollar as soon as the market opened on Tuesday. Foreign currency traders say that the demand for dollars has increased from importers due to 25 percent of additional tariffs to be implemented from Wednesday, which has put further pressure on the rupee. The rupee opened at 87.74 in the interbank foreign exchange market, which immediately came to 87.78. This shows a decline of 22 paise compared to the previous trading day. On Monday too, the rupee fell 4 paise to close at 87.56.
Why did the rupee decline?
Meanwhile, the dollar index, depicting the status of the dollar against six major currencies, fell 0.05 per cent to 98.38. The impact of high tariffs was also clear on the stock market. The BSE’s 30 -point Sensex fell 546.87 points to 81,089.04 in early trade. After this it went down about 660 points. Whereas, NSE’s Nifty 50 also fell 179.05 points to 24,788.70. Also, all shares are trading in red mark. Internationally, Brent crude fell 0.41 per cent to $ 68.52 per barrel. At the same time, the stock market data shows that foreign institutional investors (FIIs) were in a selling mood on Monday and sold shares worth Rs 2,466.24 crore.