The Indian rupee fell past 87 per US dollar for the first time, driven by an economic downturn in Asian currencies and equities after US President Donald Trump’s tariff threats turned real. The rupee fell 0.6%, a 4% slide since October. Further depreciation is likely given unfavorable macroeconomic conditions and the trade tensions still hounding the market, with Trump’s tariffs raising fears of a global trade war.
Asian currencies, including the Korean won, Malaysian ringgit, and Indonesian rupiah, also declined. And even as foreign investors pull out of Indian equities, adding pressure to the rupee that may persist with less intervention from the Reserve Bank of India (RBI).