Monday Terror Continues: Rupee Opens 16 Paise Weaker At 85.63 Vs US Dollar, RBI MPC Begins
The latest trigger for the global market disruption is the US administration's decision to impose reciprocal tariffs on nearly 60 countries.
The Indian rupee opened lower on Monday, weakening by 19 paise to 85.63 against the US dollar, as global financial markets continued to reel under the pressure of escalating trade tensions. The drop came despite a fall in crude oil prices and a softening US dollar—both of which typically support emerging market currencies like the rupee.
The latest trigger for the global market disruption is the US administration's decision to impose reciprocal tariffs on nearly 60 countries. China responded with a sharp retaliatory move, slapping 34 per cent import duties. This unsettled investor sentiment, sparking a sell-off across global equity markets.
Analysts grew increasingly concerned about the possibility of a full blown global trade war as more and more cautioned about the impact of Trump government's tariff strategy not only on the global economy, but also on American people. Experts warned that a recession in likely in the US now.
Back home, the domestic currency opened at 85.79 before recovering slightly to 85.63, still marking a 19 paise fall from Friday’s close of 85.44, reported PTI. The global tariff war triggered concerns over inflation and growth, and disappointing services PMI data added further pressure on the dollar, analysts explained.
RBI MPC Begins Today
With the Reserve Bank of India's Monetary Policy Committee beginning its three-day meeting on Monday, investors remained cautious. The committee’s rate decision, scheduled for Wednesday, is being closely watched for signals on the central bank’s stance in the current macroeconomic environment.
The market response has been sharp. On Friday, foreign institutional investors (FIIs) pulled out Rs 3,483.98 crore from Indian equities. The benchmark indices mirrored this pessimism on Monday, with both Sensex and Nifty crashing over 5 per cent.
Meanwhile, the dollar index—tracking the greenback against six major currencies—slipped 0.05 per cent to 102.71. Brent crude futures also took a hit, dropping 2.73 per cent to $63.79 per barrel after OPEC+ announced a faster-than-expected ramp-up in production.
On the economic front, India’s services sector showed a marginal dip in March. The HSBC India Services PMI Business Activity Index eased to 58.5 from February’s 59.0, though still comfortably above its long-run average of 54.2. The survey pointed to softer demand and easing inflationary pressure.
Top Headlines
