Rupee plunges 45 paise to all-time low against US dollar

The rupee depreciated 45 paise to hit a record low of 87.95 against the U.S. dollar in early trade on Monday weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities.

Forex traders said the dollar index was quoted at 108 gained after President Donald Trump said he was said to impose new 25% tariffs on all steel and aluminium imports.

The move has added jitters over the global trade war with China's reciprocal duties coming into effect, they said.

The rupee depreciated 45 paise to hit a record low of 87.95 against the U.S. dollar in early trade on Monday (February 10, 2025) weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities.

At the interbank foreign exchange, the rupee opened at 87.94 and slipped further to all-time low of 87.95 against the greenback in initial deals, a fall of 45 paise from its previous close.

On Friday, the rupee



recovered 9 paise from all-time low level to close at 87.50 against the U.S. dollar.

Rupee was expected to open weaker after RBI cut rates on Friday by 25 bps and was expected to cut another 25 bps in April to promote growth as inflation seemed to be showing a downward trend as per the Reserve Bank, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

The target of 88 is likely to be achieved in February itself as quick upside with RBI allowing the weakness to creep in has taken the pair to its all time highest level.

"The rupee is expected to be within a range of 87.70/88.10. Importers are expected to buy the dips, while exporters need to wait and watch the movement," Mr. Bhansali added.

Reserve Bank Governor Sanjay Malhotra on Saturday said that the market forces decide the value of rupee with respect to the U.S. dollar and the central bank is not worried about day-to-day movement of the currency value.