Following a spike in the US dollar relative to the Indian rupee and other world currencies, Vedanta’s shares fell 7% to Rs 410 on Monday’s BSE trading.
Following President Trump’s tariffs on the nation’s biggest trade partners, the Indian rupee fell more than Rs 87 to the US dollar for the first time, causing the US dollar to rise.
Citing the need to combat fentanyl and migration concerns, Trump implemented his threats by levying a 10% tax on China and 25% tariffs on Canada and Mexico.
Given that China is the world’s biggest importer of metals, trade disputes with the nation might significantly affect the demand for metals worldwide, increasing uncertainty for Indian metal producers.
China declared preparations to contest the penalties at the World Trade Organization, while Canada and Mexico promised counter actions. The three executive orders outlining these tariffs will go into force on Tuesday.
The US dollar, meanwhile, reached its highest level versus the Mexican peso since 2022, its best level against the Canadian dollar since 2003, and a record high against the Chinese yuan.
India’s metal industry is said to suffer from a higher US currency. It reduces export competitiveness by driving up prices for foreign consumers and the cost of imported raw materials, reducing profit margins for domestic manufacturers.
