Reuters: Trump is crashing the rupee. India's currency on the verge of a historic low due to tariffs

The Indian currency may fall to a historic low of 88 rupees per dollar on Tuesday, August 5, due to threats Donald Trump significantly increase duties on Indian goods. About this writes Reuters.

NDFs (one-month forward contacts) indicate that the Indian currency could open in the range of 88.00-88.04 per dollar.

The rupee's previous record low of 87.95 to the dollar was recorded in February 2025.

Trump has accused India of continuing to purchase and resell Russian oil at a large profit. Last week, he already imposed a 25% tariff on imports from India, which exceeded the expected tariff.

The Indian government has stated that it will do everything necessary to protect its national interests and economic security.

Financial analysts warn that the new customs threats will increase pressure on the rupee, which is already under pressure from tense trade relations with Washington.

Investors fear that rising tensions could lead to an outflow of foreign capital from Indian stocks.

• India is the second-largest importer of Russian oil, although it hardly bought any before the outbreak of a full-scale war in 2022.
• In September 2024, India's Minister of Petroleum and Natural Gas Hardeep Singh Puri said that as long as Russian oil is not under sanctions, India will buy it due to its low price.
• On August 4, 2025, Trump said that India makes money on Russian oil. She does not care about deaths in Ukraine.