Overview

• The Indian rupee dropped 19 paise to 85.63 against the US dollar on April 7, 2025, reaching a record low due to global trade tensions and foreign fund outflows.
• The US-China trade war, marked by reciprocal tariffs, has disrupted global markets, causing significant sell-offs in equities and further weakening emerging market currencies.
• India's equity markets saw sharp declines, with the Sensex and Nifty falling 4% and 4.44%, respectively, as foreign investors sold off equities worth ₹3,483.98 crore.
• The Reserve Bank of India is widely expected to announce a 25 basis point rate cut on April 9, 2025, to support economic growth and stabilize market conditions.
• India's forex reserves have grown for the fourth consecutive week to $665.396 billion, while bond yields have dropped significantly, reflecting market expectations of accommodative monetary policy.