US Treasury Secretary Scoffs at Rupee, Says It Can’t Compete with Dollar Amid Tariff Tensions

Amid escalating trade tensions between Washington and New Delhi, US Treasury Secretary Scott Bessent dismissed the idea of the Indian rupee emerging as a global reserve currency, saying it “cannot rival the dollar” as the currency remains near a record low.

In an interview with Fox News, when asked whether India’s move toward rupee-based trade poses any concern, Bessent quipped, “There are a lot of things I worry about. The rupee becoming a reserve currency is not one of them.”

The remark comes as the Indian rupee hit an all-time low against the US dollar on Friday, sliding to ₹87.965 per dollar, reinforcing the greenback’s dominance in global trade.

Bessent also described the US-India relationship as “very complicated” but expressed confidence in long-term cooperation, citing the strong personal ties between President Donald Trump and Prime Minister Narendra Modi. “India is the world’s largest democracy, and the US is the world’s largest economy. I think, at the end of the day, we will come together,” he said.

However, the Treasury chief took aim at India’s purchase of discounted Russian crude and its stance in trade negotiations, calling it “performative.” Talks for a comprehensive trade deal have been ongoing since Trump’s inauguration but remain stalled.

President Trump echoed similar sentiments earlier, mocking India’s economy over its ties with Russia. “I don’t care what India does with Russia. They can take their dead economies down together, for all I care,” he remarked, pointing to India’s high tariffs and limited trade reciprocity.

Experts, however, warn that Washington’s tariff aggression may backfire. Economist Richard Wolff noted, “India is now the largest country on earth. The US acting like the world’s tough guy will only push India closer to alternative blocs like BRICS.”

In retaliation, India has launched a major outreach strategy targeting 40 key global markets, including the UK, Japan, South Korea, Germany, France, Italy, Spain, Canada, Mexico, Russia, and Australia. These initiatives aim to boost textile exports and diversify trade ties to cushion the impact of tariffs.

Despite strained relations, trade negotiations continue, and Indian officials remain hopeful that the US will review its tariff stance in the coming weeks.