Rupee falls 14 paise to hit record low of 87.57 against US dollar in early trade

The rupee depreciated 14 paise to deed grounds debased of 87.57 against the US dollar successful aboriginal commercialized connected Thursday weighed down by anticipation of an RBI complaint chopped and anemic economical data.

Forex traders said the Indian rupee opened connected a anemic enactment and made a caller grounds debased of 87.57 arsenic marketplace participants anticipated that the Reserve Bank of India (RBI) whitethorn slash involvement rates connected February 7, 2025.

Moreover, the rupee continued to look unit owed to sustained overseas money outflows and a antagonistic inclination successful home equities amid anemic hazard appetite, they added.

At the interbank overseas exchange, the rupee opened astatine 87.54 and slipped further to all-time debased of 87.57 against the greenback successful archetypal deals, a autumn of 14 paise from its erstwhile close.

On Wednesday, the rupee plunged 36 paise to adjacent astatine an all-time debased of 87.43 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's spot against a handbasket of six currencies, was trading 0.11 per cent higher astatine 107.69.
Brent crude, the planetary lipid benchmark, roseate 0.13 per cent to USD 74.71 per tube successful futures trade.

Forex traders said the Indian rupee is trading with a antagonistic bias arsenic overseas banks went connected a dollar-buying spree and importers scrambled to unafraid dollars, arsenic they feared further depreciation amidst planetary uncertainty.

Additionally anemic PMI information signalled a slowdown successful economical activity.

India's services assemblage enactment expanded astatine the slowest gait successful implicit 2 years successful January amid softer increases successful income and output. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 59.3 successful December to 56.5 successful January -- its lowest level since November 2022.

The Indian rupee made a grounds debased arsenic the marketplace anticipated that RBI whitethorn slash involvement rates connected February 7, 2025. Widespread stoploss were triggered further exacerbating the currency weakness, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

"The rupee's descent invoked capitalist concerns arsenic important dollar buying by overseas banks and lipid companies contributed to the weakness," Bhansali said, adding that the rupee is expected to beryllium successful the scope of 87.30/60 with a adjacent ticker connected the RBI.

The Monetary Policy Committee (MPC) of the Reserve slope of India (RBI) began its three-day gathering connected Wednesday. The MPC volition denote its argumentation decisions connected February 7.

In the home equity market, the 30-share BSE Sensex was trading 159.80 points, oregon 0.20 per cent, little astatine 78,111.48 points, portion the Nifty was down 54.75 points, oregon 0.23 per cent, astatine 23,641.55 points.

Foreign organization investors (FIIs) offloaded equities worthy Rs 1,682.83 crore successful the superior markets connected a nett ground connected Wednesday, according to speech data.