Rupee plunges 45 paise to hit record low of 87.95 against U.S. dollar in early trade

In the domestic equity market, the 30-share BSE Sensex was trading 426.34 points, or 0.55%, lower at 77,433.85 points, while the Nifty was down 134.65 points, or 0.57%, at 23,425.30 points.

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.

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.

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.