ALBAWABA- The Indian rupee stabilized on Thursday, a day after sweeping U.S. tariffs on Indian goods took effect, raising concerns over trade and economic growth.
Bloomberg reported that the dollar traded at ₹87.76 in Indian markets, largely unchanged from Wednesday. Indian bond yields, however, showed volatility as traders anticipated possible intervention from the Reserve Bank of India.
The yield on benchmark treasury bonds slipped one basis point to 6.59% after rising earlier in the day.
The new tariffs, signed by U.S. President Donald Trump, impose a 50% duty on a wide range of Indian exports, a move Washington linked to New Delhi’s purchases of Russian oil.
The Indian government has warned that the measures will affect $48.2 billion worth of exports, threatening jobs and slowing economic growth.
Trade analysts say the sectors most at risk are labor-intensive industries, including textiles, gems and jewelry, leather, food products, and automobiles.
Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI) and a former Indian trade official, called the tariffs “a strategic shock” that could erase India’s market share in the U.S., trigger unemployment in export hubs, and weaken India’s role in global supply chains.
