Rupee Falls to 85.86 per USD on Trump BRICS Tariff Threat
Why in the news
The rupee slid sharply as tariff threats and a firm dollar unsettled markets, briefly crossing the 86 mark before the RBI stepped in.
Key facts
- Close: 85.86 per USD, a fall of 47 paise on Monday.
- Intraday low: 86.03; the small rebound was credited to RBI dollar sales.
- Trigger: a proposed 10% tariff by Donald Trump on countries aligning with BRICS (Brazil, Russia, India, China, South Africa), described by him as “anti-American”.
- The 90-day tariff suspension window was nearing its end with no new trade deal signed.
Other pressures
| Factor | Effect |
|---|---|
| Dollar demand from a major private bank | Added pressure on the rupee |
| Stop-loss orders | Triggered below 85.80, deepening the fall |
| Dollar Index | Up to 97.36 from 96.95 against six currencies |
Exam angle
- Rupee close: 85.86 per USD; intraday low: 86.03.
- BRICS members named: Brazil, Russia, India, China, South Africa.
- Related terms: Dollar Index, stop-loss orders, forex intervention.