Falling rupee leaves few winners

US tariffs of 50% far outweigh benefits from a weak currency

- Team Mint

After touching the 90-mark on Wednesday, the rupee hit an intraday low of 90.42 on Thursday and then closed at 89.98.

(REUTERS)

The Indian rupee’s recent slide beyond the 90-per-dollar mark offers little relief to its exporters, most of which are struggling under the weight of crippling tariffs imposed by the Donald Trump administration.

The only clear winners are the country's dominant information technology (IT) companies, while sectors with high import content grapple with surging production costs.

While a weaker rupee typically enhances export competitiveness, its 5% depreciation this year to become Asia's worst-performing currency is proving to bea weak cushion against the 50% punitive tariffs the US president unleashed on key Indian goods in August.

The damage extends across crucial sectors, including textiles, coal, energy, aviation, electronics, and chemicals. Labour-intensive export industries like apparel, which typically gain from a weak currency, are losing ground to rivals such as Bangladesh and Vietnam.