Rupee weakens 4.38% in Samvat 2081 amid global trade tension

Government bond market saw a positive trend on the back of rate cuts by RBI

- ANJALI KUMARI

The rupee remained under pressure during Samvat 2081, depreciating by 4.38 per cent against the dollar in the period. The depreciation was mainly driven by a rise in global trade tension.

The onset and escalation of US reciprocal tariffs on Indian goods, raising effective duties up to 50 per cent in some sectors, weakened investor sentiment towards Indian markets. These tariff hikes, aimed at countries, including China and others in Asia, disrupted global trade flows. They created a risk-off environment that weakened emerging market currencies, including the rupee.