Why Rupee Fell Sharply: Tariff Hit, Import Surge & What Comes Next

Is ₹90 per dollar the new normal for the rupee, or just a short-term correction? According to market expert Pankaj Tibrewal, the recent sharp dip in the rupee is largely due to tariff-related export pressure and a jump in gold imports, which weakened the current account position. Several sectors including textiles, gems & jewellery, pharma and chemicals took a major hit due to tariff barriers. However, Tibrewal believes the weakness is temporary, supported by strong long-term fundamentals-inflation differentials between India and the US have narrowed significantly, and the interest-rate gap is at just 2%, one of the lowest in years. Once tariff issues are resolved, export momentum could return, helping the rupee stabilize and potentially strengthen again.