Under Strain |
The rupee drifting beyond the 90-per-dollar mark is not merely another data point in the market’s daily churn. It is a marker of a deeper unease that has been building beneath the surface for months, fuelled by global uncertainty and domestic vulnerabilities that now stand exposed. A currency is often the most honest reflection of economic sentiment. With the rupee peaking at 90.42 before strengthening a little, the message is unmistakable: confidence is eroding faster than policymakers would like to admit.
The immediate trigger is easy to identify. Steep US tariffs on Indian goods have impaired the country’s export engine at a moment when global demand is already weak. When your largest market raises barriers, the spillover effects are swift. Exporters hedge more aggressively, importers scramble for dollar cover, and the currency market starts moving in........