Mon Feb 03 16:56:05 UTC 2025: ## Indian Rupee Slumps Amidst Global Market Turmoil

**NEW DELHI, February 3, 2025** – The Indian Rupee experienced a significant decline on Monday, falling nearly 0.6% or 49 paise to breach the 87 mark against the US dollar. This downturn follows a broader meltdown in emerging market currencies and Asian and European stock markets, triggered by President Donald Trump’s imposition of higher tariffs on Canada, Mexico, and China. The Rupee, which had previously surpassed 86 rupees per dollar on January 10th, closed at 87.11 after briefly touching 87.3 during the trading day.

Despite the currency’s weakening, a top Finance Ministry official, Economic Affairs Secretary Ajay Seth, downplayed concerns. He attributed the Rupee’s performance to a strengthening US dollar, impacting global markets, not just emerging economies. Secretary Seth emphasized that India’s policy focuses on managing volatility rather than targeting specific exchange rates and that India does not manipulate exchange rates to boost trade. He highlighted the government’s strategy to improve export competitiveness through enhancing product quality and building self-reliance. The government’s approach, he explained, is to mitigate the uncertainty created by global trade policy shifts while focusing on internal economic strengthening. This includes streamlining regulations and eliminating cost disadvantages within the Indian economy.

Read More