Rupee recovers 3 paise from all-time low to close at 87.08 against U.S. dollar

According to speech data, FIIs offloaded equities worthy ₹3,958.37 crore successful the superior markets connected a nett ground connected Monday, February 3, 2025. Photo: V.V.Krishnan

The rupee recovered 3 paise from its all-time debased level to adjacent astatine 87.08 (provisional) against U.S. dollar connected Tuesday (February 4, 2025), arsenic the American currency scale retreated from its elevated level aft President Donald Trump agreed to intermission tariffs connected Mexico and Canada.

Forex traders said the U.S. dollar index, which had surged past the 109.88 level, retreated to the 108 level aft Trump announced the impermanent intermission connected tariffs for 30 days.

At the interbank overseas exchange, the rupee opened astatine 86.98 and touched an intraday debased of 87.13 against the American currency during the session.

The section portion yet settled astatine 87.08 (provisional), higher by 3 paise implicit its erstwhile close.

On Monday (February 3, 2025), the rupee plunged 49 paise to adjacent astatine an all-time debased of 87.11 against the U.S. dollar.

“We expect the rupee to commercialized with antagonistic bias implicit uncertainty implicit U.S. commercialized tariffs. Escalation of the tariff warfare by China whitethorn dent planetary hazard sentiments wherein the U.S. dollar whitethorn strengthen, and investors would look retired for harmless haven. However, immoderate cardinal slope involution whitethorn enactment the rupee,” Anuj Choudhary – Research Analyst astatine Mirae Asset Sharekhan, said.

“Investors whitethorn stay cautious up of the Reserve Bank of India’s monetary argumentation gathering this week,” Mr. Choudhary added.

The monetary argumentation committee (MPC) of the Reserve Bank of India (RBI) volition statesman its three-day gathering connected February 5. The MPC volition denote its argumentation decisions connected February 7.

Mr. Trump connected Monday (February 3, 2025) held disconnected connected his tariff threats against Mexico and Canada for 30 days aft they pledged to boost borderline enforcement.

Meanwhile, Finance Minister Nirmala Sitharaman connected Monday (February 3, 2025) said the worth of Indian rupee is market-determined, and determination has been nary devaluation, which is simply a diagnostic of a fixed speech complaint regime.

The rupee has been falling successful caller weeks, and connected Monday (February 3, 2025) touched an all-time intraday debased of 87.29 against the American currency.

Finance Secretary Tuhin Kanta Pandey connected Monday (February 3, 2025) said determination is nary interest implicit the rupee worth and the Reserve Bank of India is managing the volatility of the section currency.

Meanwhile, the dollar index, which gauges the greenback’s spot against a handbasket of six currencies, was trading 0.48% little astatine 108.47.

Brent crude, the planetary lipid benchmark, fell 1.18% to $75.06 per tube successful futures trade.

In the home equity market, the 30-share BSE Sensex closed 1,397.07 points, oregon 1.81%, higher astatine 78,583.81 points, portion the Nifty settled up 378.20 points, oregon 1.62%, astatine 23,739.25 points.

Foreign organization investors (FIIs) offloaded equities worthy ₹3,958.37 crore successful the superior markets connected a nett ground connected Monday (February 3, 2025), according to speech data.

On the home macroeconomic front, India’s manufacturing assemblage maturation started the twelvemonth 2025 connected a beardown footing and touched a six-month precocious successful January, fuelled by the steepest upturn successful exports successful astir 14 years, a monthly survey said connected Monday, February 3, 2025.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) roseate from December’s one-year debased of 56.4 to 57.7 successful January supported by the fastest upturn successful caller export orders since February 2011.

Published - February 04, 2025 04:37 p.m. IST