New Delhi: The Indian rupee dropped to its lifetime low on Monday (February 10) to Rs. 87.95 per US dollar during early trading.
With its latest fall, the rupee on Monday went past its previous record low of 87.5825 that was recorded last week, reported Reuters.
The continued fall of the rupee amid the risk of fresh US trade tariffs has become a major matter of concern for the market.
State-run banks were spotted selling dollars before the local spot market opened, most likely on behalf of the RBI, traders said. Persistent foreign outflows and slowing economic growth have also contributed to the continuous fall of the rupee in recent weeks.
Overseas investors have pulled out over $7.5 billion, on a net basis, from Indian stocks and bonds so far this year.
The rupee has been on a downward spiral since Donald Trump’s victory in the US elections last November and has declined about 4.5% since then.
“We believe the risks to INR over coming months are skewed towards relative weakness. If the broad USD were to weaken, we believe the downside in USD/INR would be mitigated by active RBI FX purchases,” global financial services group Nomura said in a note.
