Rupee settles flat at 87.50 against USD after inching close to 88-level in intra-day trade

Rupee plunges to 88 per USD due to American currency strength and tariff concerns, but recovers slightly.

The rupee on Monday (February 10, 2025) plunged 45 paise and moved closer to the 88 per U.S. dollar-level, weighed down by the strength of the American currency tariff concerns, but settled on a flat note at 87.50 (provisional) on suspected RBI intervention.

The American currency gained in the overseas market after US President Donald Trump's plans to impose 25% tariffs on steel and aluminum imports, along with reciprocal tariffs targeting countries taxing U.S. exports.

The move has added jitters over the global trade war with China's reciprocal duties coming into effect, they said.

At the interbank foreign exchange, the rupee opened at 87.94 and touched an all-time intraday low of 87.95 against the American currency during the session.

The local unit, however, pared the initial losses and finally settled on a flat note at 87.50 (provisional), unchanged over its previous close.

On Friday, the rupee recovered 9 paise from its all-time low level to close at 87.50 against the U.S. dollar.

The rupee touched an all-time low closing level of 87.59 against the greenback on February 6.