The Indian rupee fell to a new record low of 87.9563 against the US dollar on February 10, impacted by US President Donald Trump’s announcement of fresh tariff plans. The local currency opened at 87.9175 per dollar, significantly weaker than its previous close of 87.4275.
Trump announced on Feb. 9 that he would impose a 25 percent tariff on all steel and aluminum imports, including shipments from all nations. He also announced that he would impose reciprocal tariffs on nations that charge taxes on US imports, with further details to be made later this week.
On this news, the US dollar strengthened globally, pushing the dollar index up to 108.336 in early trade from 108.040 in the previous session.
Earlier, the rupee had also stabilised on February 7 after the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6.25 percent, its first rate cut in nearly five years. The RBI’s Monetary Policy Committee (MPC) maintained its neutral stance, attempting to support economic growth.
The rate cut was only a week after Finance Minister Nirmala Sitharaman read the Budget for FY26. The RBI has projected GDP growth at 6.7 percent for the next fiscal year, and its inflation forecast for the current year remains unchanged at 4.8 percent.
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Source: Moneycontrol.
News Desk
