The U.S. dollar has experienced a decline amid market reactions to President Trump's renewed tariff proposals, which have influenced global currency dynamics. The Japanese yen has strengthened to a five-week high, reflecting its status as a safe haven. Conversely, the Indian rupee has shown resilience against the global currency fluctuations triggered by Trump's tariff threats, although it has faced challenges, including a significant drop in value over recent months. Economists have noted signs of intervention by the Reserve Bank of India (RBI), which may impact Indian exporters negatively. The rupee's performance has been notably poor this month, marking its worst month since March, as capital outflows continue and the dollar strengthens following Trump's election victory.
El dólar se encamina a su mayor pérdida semanal en tres meses a medida que los inversores empiezan a replantearse el llamado comercio Trump que ha impulsado las ganancias de la divisa desde las elecciones estadounidenses. 📸Al Drago/Bloomberg https://t.co/psQqfP21mH
Indian rupee logs worst month since March as Trump win lifts US dollar, outflows persist https://t.co/5EQBm5ECG6 via @Reuters https://t.co/kz5ZcluBbH
The rupee has been falling over last few months, but not as sharply as its peers. There are clear signs of RBI intervention, which could eventually hurt exporters. Watch Economist @Radhikaskp & Deputy Editor @SharadRaghavan discuss in ThePrint #MacroSutra https://t.co/Xru1QgRf8v