Indian Rupee drops to INR 224.30 against Omani Riyal amidst US tariff implementation

MUSCAT : Media reports indicate that the depreciation is a result of heightened concerns surrounding the impact of US tariffs on international trade.

This weakening of the rupee comes on the heels of US President Donald Trump’s decision to implement a 26 percent tariff on Indian goods, which took effect on April 9. This measure is part of a broader trade policy aimed at several countries, which the US asserts is necessary to address what it deems as ‘unfair practices.’

The new tariffs are reportedly structured in two phases, with a baseline 10 percent tariff on all US imports already in place since April 5, followed by higher, country-specific tariffs that began on Wednesday.

As a result of these developments, the Indian rupee has seen a consistent fall, marking a fourth consecutive session of losses. On Wednesday, the rupee closed at Rs 86.71 to the US dollar, further declining by 45 paise from the previous session. This was part of an ongoing trend, as the rupee had already dropped 50 paise on April 8, and 32 paise and 14 paise in the preceding sessions, leading to a total decline of 104 paise over the last four days.

Despite efforts by India’s central bank to stabilize the currency, with a recent 25-basis-point cut to the key interest rate aimed at stimulating growth, the rupee remained under pressure. This reflects growing concerns about a potential global economic slowdown, exacerbated by the new tariffs. Additionally, the Chinese yuan also experienced a sharp drop, reaching a 19-month low, as economic tensions escalate globally.