The Wire Staff 
New Delhi: The rupee’s plunge on February 25, has led it past the 87-mark against the dollar.
The Indian currency closed at 87.21 per US dollar. A day ago, it had closed at 86.6950 per dollar. The fall was of nearly 52 paise, the biggest single-day fall in about three weeks.
Reports said this decline was driven by a combination of circumstances – strong month-end demand for dollars from importers, foreign portfolio investor (FPI) selling in Indian markets, and worries surrounding the impact of tariffs imposed by US president Donald Trump.
Analysts quoted in the Hindu Businessline said that a stronger dollar, elevated currency values against major peers, and persistent foreign institutional investor (FII) outflows contributed to the rupee’s depreciation.
A large number of offshore forward contracts set to expire on the day requiring traders and investors who engaged in currency deals outside India to settle them, led to this, another analyst said.
An analyst quoted by Indian Express highlighted crude oil prices, which have remained elevated amid US tariffs on Iran – a fact which has pushed oil demand higher. “The dollar index at 106.65 also added to the pressure on the rupee.”
As the dollar improves, the rupee is forecast to end at 88 against it by the end of the year.
The currency market is closed on February 26 for Mahashivratri.