RUPEE SET TO 'DEPRECIATE' UNDER TRUMP

The rupee is expected to depreciate by 8-10 per cent against the US dollar during Donald Trump's potential second term as president, according to a recent research report by SBL This comes as the Indian currency hit a new all-time low of 84.39 against the dollar on Monday.

The SBI report, titled "US Presidential Election 2024: How Trump 2.0 Impacts India's and Global Economy," suggests that the rupee may experience short-term depreciation before stabilising and appreciating.

While the near-term volatility could bring challenges, it also presents opportunities for India, according to the findings. Trump's return as the 47th President has stirred markets, injecting new momentum into asset classes while shifting focus to broader economic impacts, including supply chain adjustments. The report highlights that Trump's victory presents a blend of risks and rewards for India. Increased tariffs, tighter restrictions on H-1B visas, and a stronger dollar could drive short-term volatility. However, these challenges may also push India towards expanding its manufacturing sector, diversifying export markets, and improving economic self-reliance in the longer term.