The Indian rupee hit a record low of 87.29 against the US dollar on Monday (February 3), depreciating by 67 paise in early trade.
Market analysts linked the decline partly to Donald Trump’s recent announcement of tariffs on Canada, Mexico, and China, which reignited fears of a trade war.
However, the rupee had been on a downward trajectory even before these tariffs were imposed. Over the past ten months, the rupee has depreciated by more than 3.6%, The Indian Express reported.
At the interbank foreign exchange market, the rupee opened at 87 per dollar and further weakened to 87.29 in initial trade, marking a sharp fall of 67 paise from its previous close, PTI reported.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six major currencies, surged by 1.30% to 109.77.
The stock market also faced turbulence, with the BSE Sensex dropping 575.89 points (0.74%) to 76,930.07, while the Nifty declined 206.40 points (0.88%) to 23,275.75.
The breach of the 87-per-dollar mark comes just days ahead of the Reserve Bank of India's (RBI) monetary policy review scheduled later this week.
By the end of Monday’s session, the rupee settled at 87.11 against the dollar, recording a 49 paise drop from its Friday (January 31) closing value of 86.62 per dollar.
Market analysts linked the decline partly to Donald Trump’s recent announcement of tariffs on Canada, Mexico, and China, which reignited fears of a trade war.
However, the rupee had been on a downward trajectory even before these tariffs were imposed. Over the past ten months, the rupee has depreciated by more than 3.6%, The Indian Express reported.
At the interbank foreign exchange market, the rupee opened at 87 per dollar and further weakened to 87.29 in initial trade, marking a sharp fall of 67 paise from its previous close, PTI reported.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six major currencies, surged by 1.30% to 109.77.
The stock market also faced turbulence, with the BSE Sensex dropping 575.89 points (0.74%) to 76,930.07, while the Nifty declined 206.40 points (0.88%) to 23,275.75.
The breach of the 87-per-dollar mark comes just days ahead of the Reserve Bank of India's (RBI) monetary policy review scheduled later this week.
By the end of Monday’s session, the rupee settled at 87.11 against the dollar, recording a 49 paise drop from its Friday (January 31) closing value of 86.62 per dollar.
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