Rupee Weakens Against Dollar: Two Sectors Feeling The Heat, Top Expert Explains

Rupee Hits Record Low: Impact on Key Sectors and Market Outlook. On Monday, December 2, 2024, the Indian rupee fell to an all-time low of 84.70 against the US dollar, breaking its previous record of 84.5075. This sharp decline is attributed to several factors, including slower-than-expected Q2 GDP growth of 5.4% and elected US President Donald Trump’s warning of 100% tariffs on BRICS nations. Experts suggest that this development could exert pressure on the Reserve Bank of India (RBI) to consider lowering the repo rate to revive domestic consumption and mitigate the economic impact. Prashanth Tapse, Research Analyst at Mehta Equities, points out that IT and Pharma are the two sectors likely to face headwinds from the weakening rupee due to their heavy reliance on exports to the US market. Despite these challenges, Pharma stocks have shown some resilience, with companies like Sun Pharma trading positively. On the other hand, the IT sector may struggle as export margins are impacted. What does this mean for the Indian economy, and how should investors navigate these uncertainties? Watch Business Today TV's in-depth analysis, featuring top experts, as they discuss the potential long-term effects of the rupee's fall and strategies to stay ahead in this evolving market.