Indian rupee drops against UAE dirham after Trump’s tariff threats on India
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The Indian rupee fell against the UAE dirham on Tuesday, August 5. The decline followed renewed tariff threats by U.S. President Donald Trump, raising concerns over escalating trade tensions between the U.S. and India.
The rupee opened at 87.85 to the U.S. dollar, equivalent to Dh23.93, slipping from Monday’s closing rate of 87.6550 (Dh23.8841). Traders said the currency was under pressure but managed to avoid breaching the record low of 87.95 (Dh23.96), likely due to central bank intervention.
Earlier forecasts in the non-deliverable forward market had suggested the rupee might weaken past 88 to the dollar at opening.
The timing of Trump’s statement adds further pressure on the rupee, coming just ahead of a key Reserve Bank of India (RBI) meeting this week. The RBI is widely expected to further cut interest rates in the face of growing economic concerns.