On February 9, US President Donald Trump declared that he will impose 25% tariffs on all aluminum and steel imports.
Due to U.S. President Donald Trump’s fresh tariff intentions, the Indian rupee fell to a new record low of 87.9563 against the US dollar on February 10.
The local currency started the day at 87.9175 versus the US dollar, a significant decline from the previous trading session’s 87.4275 versus the US dollar.
US President Donald Trump declared on February 9 that he would impose 25% tariffs on all aluminum and steel imports.
Speaking to reporters on Air Force One on Sunday, Trump stated that the tariffs would be imposed on all metal imports from all nations. He made no mention of the start date of the tasks.
Later in the week, Trump also promised to impose reciprocal tariffs on nations that impose import taxes on the United States. Trump stated that the tariffs won’t take effect on the same day as the announcement, which might happen on Tuesday or Wednesday but shortly thereafter.
As a result, the dollar index rose to 108.336 at the start of trading, up from 108.040 during the previous session.
The Reserve Bank of India‘s monetary policy announcement was not more dovish than anticipated, which gave the local currency confidence on February 7 and caused it to rally less.
To help a faltering economy, the RBI MPC, which convened for the first time under new central bank governor Sanjay Malhotra, lowered the repo rate by 25 basis points to 6.25 percent.
The “neutral” posture was unanimously maintained by the rating panel.
The rate drop, which is the first in nearly five years, was announced one week after the FY26 budget was unveiled by Finance Minister Nirmala Sitharaman. The RBI predicted 6.7 percent GDP growth in the upcoming fiscal year. The current fiscal year inflation estimate of 4.8 percent remained unaltered.
