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Rupee Fell Past 87 Against US dollar To A Record Low
Anshul Chandak, head of treasury at RBL Bank, told news agency Reuters that the macros “look stacked up against the rupee”. “We expect it to stay under pressure over the next 6–8 weeks, Chandak said.
The tariffs imposed by Donald Trump have also fuelled worries of a full-scale trade war, with global brokerage firm Morgan Stanley saying that “the risk of our worst fears materialising has risen”
"Risks are skewed towards further escalation. Asia will be exposed on account of high trade orientation and seven economies run large trade surpluses with the US,” it added.
Not just the rupee, but Indian stock markets also tanked as a result of the Trump tariffs, which overshadowed the positive impact of the Union Budget 2025.
According to analysts, domestic stock markets could also remain under pressure as Trump’s tariffs could likely fuel more FII outflows.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 1.30% higher at 109.77.
"The range for the day is expected to be between 86.65/87.00 with the Reserve Bank expected to intervene to cool off the dollar bids," the report quoted Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP as saying.
However, the reserves had dropped $1.888 billion to $623.983 billion overall.
The reserves' declining trend has been going on for the last few weeks, with the drop attributed to revaluation, along with forex market interventions by the central bank to help reduce volatilities in the rupee.