The rupee weakened by 26 paise to 85.78 against the US dollar in early trade on Thursday following the US government's imposition of new tariffs.
The US has announced a 27% reciprocal tariff on Indian imports, citing India's high import duties on American goods. The move, part of the Trump administration's strategy to reduce the trade deficit and boost domestic manufacturing, affects around 60 countries, including India.
While the tariff hike is expected to impact India's exports to the US, experts believe India remains in a stronger position compared to its global competitors, who are also facing similar levies.