The Indian rupee witnessed a sharp decline on Friday, plunging 61 paise to breach the psychologically significant 86-per-dollar mark, following a combative statement from former U.S. President Donald Trump targeting BRICS nations. The rupee opened at 85.5837 and slid to 86.0038 in afternoon trade, compared to its previous close of 85.3950.
Market experts attribute the sudden fall to heightened geopolitical tensions and renewed fears over strained India-U.S. trade relations. The sell-off intensified after Trump issued a fiery warning on his social media platform, Truth Social, vowing to impose an additional 10% tariff on any country aligning with the “Anti-American policies of BRICS.”
“Any Country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump posted.
The remarks come at a sensitive time as BRICS nations convene in Rio de Janeiro for their annual summit, which includes key players like India, China, Russia, Brazil, and South Africa—nations increasingly seen as forming an economic and strategic counterweight to Western dominance.
Currency analysts warn that the Indian rupee may face further pressure if the proposed tariffs materialize or if diplomatic efforts between India and the U.S. falter. A cloud of uncertainty looms over ongoing India-U.S. trade deal negotiations, with no major breakthrough in sight as both sides attempt to resolve lingering tariff disputes.
The added threat of a 10% tariff from the U.S. could disrupt Indian exports and widen the country’s current account deficit, further weakening the currency.
Traders are now closely watching the BRICS summit’s outcomes and any official responses from the Indian government or U.S. trade representatives. Until clarity emerges, the rupee is likely to remain under pressure, with volatility expected to persist in the near term.