• Notification Date: 10-02-2025
• Notification No: N/A

Indian rupee hits record low as U.S. tariff worries take toll, RBI steps in to curb losses

The Indian rupee dropped to a record low of 87.95 per U.S. dollar on Monday, driven by growing concerns over fresh U.S. trade tariffs. The currency's sharp fall, surpassing its previous low of 87.5825, was spurred by President Trump's announcement of a 25% tariff on steel and aluminum imports into the U.S. This move is expected to affect Asian currencies, with the rupee being one of the hardest hit.

By the time the rupee crossed 88, state-run banks had started selling dollars, perhaps on behalf of RBI to put an end to the falls. Support at the hands of rupee kept the rupee conveniently above the much-desired psychological mark of 88.

The dollar index, which monitors the value of the US currency against a basket of major currency powerhouses, climbed to 108.3 and now mounts additional pressure on regional currencies. Asian currencies slipped 0.1% to 0.6% as the potential damage from Trump's tariff plans filtered into trader psyches.

Traders are now watching the RBI closely as trade tensions escalate and global economic uncertainty raises concerns over the rupee's volatility.