The Indian rupee hit a new all-time low on Monday (February 10), weakening to Rs 87.95 against the US dollar in early trade.

The decline surpasses the previous record low of Rs 87.58, recorded just last week.

The continued depreciation of the rupee, driven by concerns over potential US trade tariffs, has raised alarm in financial markets. Traders observed state-run banks selling dollars ahead of the local spot market opening, likely acting on behalf of the Reserve Bank of India (RBI), reported Reuters.

A combination of persistent foreign capital outflows and slowing economic growth has further contributed to the rupee’s downward trajectory in recent weeks. So far this year, overseas investors have withdrawn more than $7.5 billion from Indian equities and bonds on a net basis.

The rupee has been in a steady decline since Donald Trump’s victory in the US elections last November, depreciating by approximately 4.5% since then.

Global financial services firm Nomura noted in a report that the risks to the Indian rupee remain tilted toward further depreciation in the coming months.

However, any broad-based weakness in the US dollar could limit the rupee’s losses, as the RBI is expected to intervene through foreign exchange purchases.