Indian Rupee Reached Record Low: Touched 87.95 Mark

The Indian rupee fell by 45 paise, reaching a record low of 87.95 against the US dollar in early trading on Monday, February 10, 2025. This was largely due to the strength of the US dollar in the global market and a negative trend in domestic equities.

At the interbank foreign exchange market, the rupee opened at 87.94 before slipping further to its all-time low of 87.95 against the greenback in initial trades. This marked a fall of 45 paise from its previous closing.On Friday, the rupee had gained 9 paise from its all-time low, closing at 87.50 against the US dollar.

Reserve Bank of India (RBI) Governor Sanjay Malhotra stated on Saturday that market forces determine the rupee’s value in relation to the US dollar and that the central bank is not concerned with daily fluctuations in the currency’s value. Malhotra emphasized that the RBI focuses on the rupee’s value in the medium to long term.

The dollar index, which measures the greenback’s strength against a basket of six currencies, was up by 0.22% at 108.28.

Brent crude, the global oil benchmark, increased by 0.63%, reaching USD 75.13 per barrel in futures trade.

Forex traders noted that the Indian rupee is trading with a negative bias. This was attributed to foreign banks purchasing dollars and importers rushing to secure dollars, fearing further depreciation amid global uncertainties.

Domestic Equity Market Declines

The domestic equity market showed a decline, with the 30-share BSE Sensex falling by 426.34 points, or 0.55%, to 77,433.85. The Nifty index also dropped by 134.65 points, or 0.57%, to 23,425.30 points. Foreign institutional investors (FIIs) sold equities worth ₹470.39 crore on a net basis in the capital markets on Friday, according to exchange data.

India’s foreign exchange reserves rose by USD 1.05 billion to reach USD 630.607 billion for the week ending January 31, as reported by the RBI on Friday. The reserves had previously increased by USD 5.574 billion to USD 629.557 billion in the prior week.

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