New Delhi, February 3 – The Indian Rupee (INR) continued its downward trajectory on Monday, the first trading session after the Budget, plunging 67 paise to hit an all-time low of ₹87.29 per US dollar. The sharp depreciation in the rupee comes amid persistent foreign capital outflows and sustained demand for the US dollar from oil importers.
Rupee Opens Weak, Hits Record Low
At the interbank foreign exchange market, the rupee opened at ₹87.00 per US dollar, but further weakened to ₹87.29, reflecting a significant decline of 67 paise in early trading.
Meanwhile, the US Dollar Index, which measures the greenback’s strength against a basket of six major global currencies, surged 1.30% to 109.77, indicating broad-based dollar strength in global markets.
Key Factors Behind the Rupee’s Decline
According to forex traders, the rupee’s sharp fall is attributed to:
✅ Sustained foreign capital outflows, putting pressure on the Indian currency.
✅ Robust demand for the US dollar from oil importers.
✅ A strengthening US dollar, fueled by global risk aversion.
✅ Trade tensions escalating after US tariff hikes, impacting investor sentiment.
Global Trade Uncertainty Weighs on INR
The depreciation in the rupee was exacerbated after US President Donald Trump signed orders imposing new tariffs:
- 25% tariff on Canada and Mexico.
- 10% tariff on Chinese imports.
These protectionist measures have fueled concerns over a potential trade war, leading to increased dollar demand and a further slide in emerging market currencies, including the Indian Rupee.
Previous Close and Market Reaction
- On Friday (last trading session), the rupee closed at ₹86.62 per US dollar.
- The recent slump marks a significant depreciation, raising concerns about inflation and import costs, particularly in the oil and energy sectors.
Market Outlook
Experts believe that the rupee may remain under pressure unless:
✅ Foreign capital inflows stabilize.
✅ Oil prices ease, reducing dollar demand from importers.
✅ The US dollar rally slows, reversing its bullish trend.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
