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Below the Perspective on INR hitting fresh lows by Mr Nish Bhatt, Millwood Kane International

Trump and tariffs have taken center stage. The latest announcement from the White House has affected global markets. Tariffs on imports from Mexico, Canada, and Chinese goods have pushed the Dollar Index to nearly a one-month high. The Dollar index touched a level of 109.50, which resulted in the Rupee dropping to a fresh low. The rise in Dollar and FII outflows has affected INR negatively.

What is surprising is the INR is depreciating against the USD despite the market interventions by the RBI. Concerns about a slowing Indian economy and the overvaluation of the rupee led to further depreciation. At a macro level, we expect the rupee to depreciate further to 88-90/$. The US's new tariff announcements are likely to put further pressure on the rupee. Clarity on the US trade tariff policy, DXY movement, recovery in domestic consumption, and growth rate will guide the rupee in 2025.

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