Rupee Plummets Amid US Tariff Pressure

17-Sep-2025 04:13 PM

Mumbai. The Indian rupee's exchange rate has fallen significantly against the US dollar, providing a strong boost to India's exports of commercial goods, but making imports from abroad significantly more expensive.

On the first day of the current week, the value of 1 dollar rose to 88.30 rupees. The imposition of a hefty 50 percent import duty on Indian products in the US has altered investor sentiment toward Indian goods exports there.

Forex traders say the rupee is trading with limited fluctuations. The currency market is grappling with a mix of concerns and expectations.

On one hand, there are concerns about US trade tariffs leading to the outflow of foreign exchange portfolios from the country, while on the other hand, there are expectations of an interest rate cut by the US Federal Reserve.

Since the US has been India's most significant trading partner, any policy changes there will naturally have a direct impact on India.

It is noteworthy that on September 12, the Indian rupee started rising from its all-time low and finally closed at 88.26 with a gain of 9 paise. On September 15, it opened at 88.25 against the dollar in the interbank foreign exchange market and fell to 88.30.

Thus, compared to the end of last week, the Indian rupee closed at 88.30 against the dollar at the beginning of the current week with a decline of 4 paise. Trade talks with the US are likely to resume.