Rupee falls significantly due to Trump’s tariffs spark.

The decline of the rupee can be attributed to the strengthening of the dollar, as robust employment data from the United States diminished expectations for additional interest rate reductions by the Federal Reserve. Additionally, a rise in oil prices has negatively impacted sentiment in India, which is a net importer of oil. In recent weeks, the Indian rupee has reached unprecedented lows, further exerting pressure on stocks and bonds that are already facing challenges due to a slowdown in corporate earnings growth and capital outflows.

The Hindustan Times pointed out on February 3 that foreign funds continued to flow out, with 13.27 billion rupees, which about 1.75 hundred million dollars, foreign funds flowed out on February 1 alone.

*Photo reference: https://www.msn.com/en-in/money/topstories/rupee-plunges-below-87-sensex-slumps-over-trump-s-tariff-war/ar-AA1ymfnx