On 1st Feb, when US imposed tariffs on China, few could have anticipated that President Trump would also target India, particularly given the camaraderie between Trump and Prime Minister Modi. But that’s what happened and Indian rupee had the most volatile period ever since. In the same period, DXY weakened by ~10%. Indian rupee depreciated nearly by 2% to a record low of Rs 88.79/$1 on 23rd Sep, from Rs 87.20/$1 seen on Feb 1, majorly on the back of geopolitical tensions, delay in Federal Reserve rate cuts, followed by the lingering concerns over US-India trade policies. On 19th Sep, Trump imposed a $100,000 fee for new H-1B visas, dampening the investors risk appetite. This is in addition to 50% tariff imposed on Indian goods.
