The Trump Effect: Overseas Workers Benefit from Currency Fluctuations
The global trade war, initiated by U.S. President Donald Trump, has witnessed considerable shifts in currency exchange markets. Countries such as Canada, Mexico, China, and others were the prime targets of this trade dispute, which had ripple effects on currency values worldwide. The most noticeable impacts were the falls in value by several foreign currencies, especially when the Indian Rupee touched fresh lows against the U.S. Dollar.
Once the value of the Indian Rupee started sliding, it rippled into India's market scenario, impacting stocks and foreign exchanges. Both leading market gauges-the Sensex and Nifty- took substantial falls during initial trading hours. However, these markets recovered a little in the later half of the day. Still, the market closed with significant losses. The financial markets were also affected by the government's announcements, which included tax cuts and other economic reforms. In the Gulf region, where many Indian expatriates live and work, the falling value of the Rupee led to a sharp increase in the exchange rates of Gulf currencies.
Indian migrant workers in the UAE, Qatar, Bahrain, Kuwait, and Oman countries had higher exchange rates for sending money back home. For example, the Rupee-to-UAE Dirham exchange rate became unprecedentedly high at one point. In fact, most of these regions recorded the highest ever exchange rates lately, which has led to increased money transfers to India. This situation has been caused by the war initiated by Trump through his actions that have changed currency values and world economic policies generally. More directly, the currency rates of Mexico were influenced as the country suffered a brief reversal of some tariffs applied by the U.S.
President Trump had also indicated plans to deploy military forces to reinforce the U.S. southern border, as part of immigration policies. He discussed the issue with President Claudia Sheinbaum of Mexico, where he emphasized curbing illegal immigration. President Trump also communicated with Canadian Prime Minister Justin Trudeau on similar issues and confirmed that talks would continue.
As an offshoot of global economic conflicts, these issues have impacted practically every sector that has continued and continues to inform economic and political landscapes around the world.