In the first 100 days of Donald Trump’s second presidency, starting January 20, 2025, the US dollar has suffered its worst performance among G10 currencies, dropping over 7% against the British pound, according to an HSBC Asset Management report. This decline, coupled with a staggering 22% surge in gold prices, reflects growing investor unease fueled by Trump’s unpredictable trade policies, notably his tariff hikes. “The dollar’s slide signals a potential end to American exceptionalism,” notes HSBC, highlighting how policy uncertainty has disrupted traditional market dynamics, with stocks, bonds, and interest rates behaving erratically, shaking global confidence.

The S&P 500, a key US equity index, ranks among the world’s worst-performing stock indices during this period, battered by fears of a trade war ignited by Trump’s April 2 tariff announcements. Meanwhile, global oil prices have dipped below $60 per barrel for the first time since early 2021, driven by trade tensions and weak US economic data, further dampening demand outlooks. “Investors are grappling not just with what Trump’s tariffs might do, but the damage already done,” says financial analyst Priya Sharma, underscoring the pervasive market volatility that has left the US economy teetering on the edge of uncertainty.

Amid this global upheaval, India’s economy has charted a divergent path, buoyed by the Reserve Bank of India’s (RBI) strategic interventions. In March, the RBI initiated an interest rate cut cycle, revitalizing the Indian stock market and boosting bond market appeal. “The RBI’s liquidity measures and the government’s fiscal discipline have created a robust environment,” says economist Arjun Mehra, pointing to India’s resilience despite initial investor concerns over global headwinds. As Trump’s policies continue to reshape the world economy, India’s steady performance offers a beacon of stability, leveraging domestic strengths to navigate an uncertain landscape.