Indian rupee slumps in NDF market on risk rout sparked by US tariffs

MUMBAI: The Indian rupee weakened against the U.S. dollar in the non-deliverable forward market on Monday on severe risk aversion amid fears that U.S. tariffs could fuel an economic slowdown.

The 1-month dollar/rupee NDF was quoted at 85.98/86.02, indicating that the onshore spot market will open at 85.75 compared to 85.2350 on Friday.

U.S. equity futures dropped 2.5%, signalling further losses for the S&P 500 Index after Friday’s 6% selloff.

India rupee little changed

The risk-off mood spilled into Asia, where Hong Kong shares plunged 9% and Japan’s index slid 6%, reflecting deepening investor anxiety due to the impact of U.S. tariffs.