Feb 1 Saturday, 2025: The Indian rupee hit a record low of 86.65 per dollar amid concerns over US trade tariffs and a strong dollar index. The RBI likely intervened to stabilize the currency, but broader Asian markets also declined following tariff announcements by President Trump.
The Indian rupee hit a record low on Friday. This was due to concerns over potential US tariffs and the threat of trade tensions under President Donald Trump—the tariff threats as weighed on the currencies of most Asian currencies.
The rupee reached an all-time low of 86.65 per dollar when its previous hit recorded a low of 86.6475 earlier this month. The Reserve Bank of India likely stepped in to support the rupee. State-run banks were seen offering a dollar index was high at 108.2 which contributed to rupee depreciation.
Amid expectations that the RBI will cut rates at its policy meeting next week, the rupee has declined about 1.2% over January and is on track to underperform its regional peers.
Asian currencies declined following Trump’s announcement of tariffs on Canada and Mexico and potential levies on China as well.
The rupee is likely to be volatile between the range of 86.20-86.89 said Amit Pabari. He is the managing director at FX advisory firm CR Forex. Bankers are expecting to see strong interest from lenders and corporate treasuries.
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