Rupee falls 14 paise to hit record low of 87.57 against U.S. dollar in early trade

Rupee hits record low against U.S. dollar on anticipation of RBI rate cut, weak economic data, and foreign fund outflows.

The rupee depreciated 14 paise to hit record low of 87.57 against the U.S. dollar in early trade on Thursday (February 6, 2025) weighed down by anticipation of an RBI rate cut and weak economic data.

Forex traders said the Indian rupee opened on a weak note and made a fresh record low of 87.57 as market participants anticipated that the Reserve Bank of India (RBI) may slash interest rates on February 7, 2025.

Moreover, the rupee continued to face pressure due to sustained foreign fund outflows and a negative trend in domestic equities amid weak risk appetite, they added.

At the interbank foreign exchange, the rupee opened at 87.54 and slipped further to all-time low of 87.57 against the greenback in initial deals, a fall of 14 paise from its previous close.

On Wednesday (February 5, 2025), the rupee plunged 36 paise to close at an all-time low of 87.43 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11% higher at 107.69.

Brent crude, the global oil benchmark, rose 0.13 per cent to $74.71 per barrel in futures trade.