Feb 10, Monday, 2025: The rupee falls when it has already become Asia’s worst-performing currency of the year and as the RBI tries to build its forex reserves. The Indian rupee plunged to an all-time low of 87.94 against the US dollar on Monday, February 10, 2025.
The Indian rupee has plunged to an all-time low of 87.94 against the US dollar, as of Monday, February 10, 2025. This significant drop comes after the Reserve Bank of India (RBI) cut the benchmark repo rate by 25 basis points to 6.25% from 6.5% earlier this week, and the US dollar continued to show strength, creating pressure on the rupee.
The rupee’s fall is also expected to get worse as the Reserve Bank of India (RBI) may continue to build its foreign exchange reserves, according to a Bloomberg report.
The impact this will have on the rupee decline may have significant implications for the Indian economy, including increased costs and decreased export competitiveness. The rupee has hit an all-time low of 87.94 against the US dollar. The possible reasons for this sudden drop are seen as the RBI’s rate cut and the US dollar’s strength as contributing factors to the rupee’s decline.
The rupee’s fall is expected to worsen due to the RBI’s potential continued buildup of foreign exchange reserves.
The rupee has previously fallen to record lows, including 87.57 against the US dollar on Feb 6, 2025, and 87.46 against the US dollar on Wednesday, February 5, 2025.
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