The rupee hit a new all-time low on Monday as concerns over potential U.S. trade tariffs triggered losses across most regional currencies. Traders told Reuters that the Reserve Bank of India (RBI) would likely intervene to stabilise the currency.
In early trade, the rupee weakened to 87.95 per U.S. dollar, surpassing its previous record low of 87.5825 from last week. It was last trading at 87.9325, down 0.6% for the day.
Market participants noted that state-run banks were seen selling dollars before the spot market opened, possibly acting on behalf of the RBI.
The rupee was expected to breach the 88 level at the open, but dollar sales helped it stay above this psychologically significant mark.
Meanwhile, former US President Donald Trump announced plans on Sunday to impose a 25% tariff on steel and aluminium imports, along with reciprocal tariffs on all countries based on their respective trade policies.
The dollar index strengthened to 108.3, while Asian currencies declined between 0.1% and 0.6%.
