The Indian rupee fell 16 paise against the US dollar on Thursday to close at an all -time low of 87.59. Forex traders said the Indian rupee reached a new record low amidst the demand for dollar from weak domestic markets and importers. According to PTI news, the Monetary Policy meeting on Friday by the Reserve Bank of India saw a decline in currency due to the increase in interest rates.
This year has fallen by more than 2 percent so far
According to the news, the trend to avoid risk in global markets can put further pressure in the global markets amid the ongoing uncertainty on US trade charges. The rupee opened at 87.54 in the Interbank Forex Exchange Market and reached an all -time low of 87.60 against the dollar in early deals. The domestic unit finally closed at 87.59 against the dollar, which declines by 16 paise from the previous bandh. On Wednesday, the rupee fell 36 paise to close at 87.43 against the US dollar. So far this year, the local unit has fallen by more than 2 percent.
One of the worst performing Asian currencies
This sharp decline in the domestic unit came in 2024 after the USD/INR pair has come down by about 3 percent, making it one of the worst performing Asian currencies. On January 1, 2024, the rupee was at 83.21 against the dollar. So far this year, the rupee has fallen by 193 paise. On January 1, 2025, the domestic unit was spoken at 85.64 against the dollar. Forex traders said that the rupee is trading with negative bias due to the global trade war as market participants are considering the impact of the tariff being imposed by the United States and China.
Any intervention by RBI can give support
Anuj Chaudhary, a research analyst at Mirae Asset Sharekhan, said that we hope that the rupee would trade with a negative trend amidst the demand for weaker domestic markets and importers. The tendency to avoid risk in global markets can put further pressure on the rupee amidst the ongoing uncertainty on American trade charges. However, any interference by RBI can support the rupee at lower levels. Chaudhary further said that investors may be cautious before the decision of RBI’s monetary policy meeting and American non-agricultural payroll data on Friday. He said that USD-INR spot price is expected to be traded between 87.30 and 87.90.
According to Anil Kumar Bhansali, Treasury Head and Executive Director of Finrex Treasury Advisors LLP, Indian rupee records due to RBI cuts of 25 basis points in interest rates and some dollar purchases from importers as well as some dollars from oil and defense companies. Reached the lower level. He further said that the rupee is moving towards $ 88 per dollar due to the RBI being relaxed in its policy of selling dollars at every boom.
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