Amid growing speculation over the possible return of Donald Trump to the White House, the US dollar strengthened sharply on Wednesday, pushing the Indian rupee to a historic low of 84.25 against the dollar. This development, as per ANI, has fuelled market expectations of increased government spending under a Trump administration, which could lead to a rise in the US fiscal deficit.

According to ANI, investors anticipate that Trump’s policies, known for prioritising domestic infrastructure projects, would likely push the fiscal boundaries and increase government borrowing needs. This outlook has already led to a stronger dollar, reaching levels last seen in July.