The rupee depreciated 0.67 to hit record low of 87.29 against the US dollar in early trade on Monday after Trump Tariffs on Canada, Mexico and China triggered fears of a broad trade war, reports NDTV.
Donald Trump slapped Canada and Mexico with 25 percent duties and China with a 10 per cent duty, The move was the first strike in what could usher a destructive global trade war, forex traders said.
The rupee continued to face pressure due to sustained foreign fund outflows and the broad strength of the American currency in the overseas markets due to unabated dollar demand from oil importers and weak risk appetite, they added.
At the interbank foreign exchange, the rupee opened at 87.00 and slipped further to 87.29 against the greenback in initial deals, a plunge of 0.67 rupee from its previous close.
On Friday, the rupee settled flat at 86.62 against the American currency.
"The start of the week saw financial markets on edge as US President Donald Trump followed through on his tariff threats, imposing duties on imports from Mexico, Canada, and China," CR Forex Advisors MD- Amit Pabari said.
This escalating trade war has fuelled risk aversion, propelling safe-haven demand for the US dollar, which has surged toward 109.50 levels, Pabari added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 1.30 per cent higher at 109.77.
Bd-pratidin English/Tanvir Raihan
