The Indian Rupee experienced its most significant decline in nearly a month as US President Donald Trump announced reciprocal tariffs on various countries, raising concerns about potential disruptions to trade and supply chains. The domestic currency opened at 85.73 against the US dollar, down 22 paise from its previous close of 85.51 on Friday, marking the weakest opening since March 10. Over the past two trading sessions, the Rupee has depreciated by 28 paise amid escalating fears of a global trade conflict.

Despite this recent downturn, the Rupee had appreciated by 2.39% in March, making it the strongest month since November 2018, largely influenced by a decline in the dollar index. However, for the entire current financial year, the currency has seen a 2.42% decline.

The Trump administration's decision to impose a 26% tariff on imports from India has further complicated matters. This tariff rate is notably higher than those imposed on other regions, including 20% for the European Union, 24% for Japan, and 25% for South Korea. Trump criticized India's tariffs as "very, very tough," highlighting that the 26% levy on Indian imports is significantly more than the tariffs India applies to US goods. This development has intensified market anxieties and contributed to the Rupee's recent weakness against the dollar.

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