U.S. Treasury Secretary Scott Bessent isn’t losing sleep over the Indian Rupee challenging the U.S. Dollar’s dominance as a global reserve currency.
Not Worried About ‘The Rupee’ Becoming A Reserve Currency
On Thursday, in a post on X, Shashank Mattoo, an Indian journalist, shared a snippet of Bessent’s recent appearance on Fox Business’ Mornings With Maria.
During his appearance, host Maria Bartiromo asks Bessent if he worries that India “is going to set trade in the Rupee,” to trade with its BRICS trading partners, instead of the U.S. Dollar, to which he responds, saying, “There are a lot of things I worry about. The rupee becoming a reserve currency is not one of them.”
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Bessent goes on to add that with the ongoing trade tensions between India and the United States, the Rupee is currently “at an all-time low versus the U.S. Dollar.”
The Indian Rupee currently trades at 87.806 against the U.S. Dollar, nearing its all-time low of 87.95, amid ongoing trade and tariff-related tensions.
US-India Trade Talks Resume Amid 50% Tariffs
As President Donald Trump’s 50% tariffs on India took effect on Wednesday, officials from the two nations continued to hold talks with a virtual 2+2 Intersessional Dialogue on Monday, discussing trade, defense ties and even regional security, among other things.
The tariffs imposed by Trump are expected to hit India’s GDP to the tune of $36 billion, or 0.9% of the nation’s annualized GDP.
They have, however, emerged as tailwinds for certain U.S. companies that no longer have to compete with cheaper Indian imports. This includes apparel companies such as Levi Strauss & Co. (NYSE:LEVI) and Tapestry Inc. (NYSE:TPR), alongside jewelry retailer Signet Jewelers Ltd. (NYSE:SIG), among others.
Photo Courtesy: Maxim Elramsisy on Shutterstock.com
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