The Indian rupee plunged to a new all-time low on Monday, as concerns over potential U.S. trade tariffstriggered losses across most regional currencies. Market experts believe the Reserve Bank of India (RBI) may step in to stabilize the currency.
In early trade, the rupee weakened to 87.95 per U.S. dollar, breaching last week’s record low of 87.5825. It was last trading at 87.9325, down 0.6% for the day.
RBI Intervention Suspected as Banks Sell Dollars
Traders told that state-run banks were seen selling dollars even before the spot market opened, possibly acting on behalf of the RBI to curb excessive depreciation.
Market participants had anticipated the rupee to breach the 88 mark, but strategic dollar sales helped it remain above this critical psychological level.
U.S. Tariff Threats Impact Global Markets
The sharp decline in the rupee comes after former U.S. President Donald Trump announced plans to impose a 25% tariff on steel and aluminum imports, along with reciprocal tariffs on all countries based on their trade policies.
The dollar index rose to 108.3, while Asian currencies fell between 0.1% and 0.6%, reflecting widespread market uncertainty.
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