Caught in the Crossfire: The Rupee and the US China Trade War
The contemporary global economic landscape is increasingly shaped by the interplay of geopolitical tensions, trade conflicts, and currency dynamics. Among these, the US–China trade war stands out as a defining episode, not only for its direct impact on the world’s two largest economies but also for its far-reaching consequences on emerging markets such as India. The fluctuations of the Indian Rupee during this period offer a compelling lens through which to understand how interconnected global systems transmit shocks across borders. This episode highlights the fragility of economic stability in an era where trade policy, capital flows, and currency valuations are deeply intertwined. At its core, the US–China trade war emerged from longstanding concerns within the United States regarding China’s trade practices. These included allegations of intellectual property violations, forced technology transfers, and a persistent trade imbalance. In response, the United States imposed tariffs on...