New Delhi, February 3, 2025 – The Indian rupee hit a record low of 87.29 against the US dollar, dropping 67 paise amid global trade tensions triggered by Donald Trump’s tariff hikes on major economies. Investors turned to the US dollar as a safe-haven asset, leading to foreign fund outflows and increased pressure on the Indian currency. Analysts attribute the decline to rising crude oil prices and demand for the US dollar from importers.
The rupee’s depreciation also impacted the stock market, with the BSE Sensex falling by 575 points and the NSE Nifty dropping 206 points. Meanwhile, the US dollar index surged to 109.77, affecting global currencies, including the Euro and British pound. The RBI is expected to intervene to curb volatility, as concerns grow over the economic impact of a prolonged trade war.
