India-West News Desk
MUMBAI – The Indian rupee hit a record low on February 6, declining to 87.5825 against the U.S. dollar, as market concerns over U.S. trade policies and continued portfolio outflows weighed on the currency.
The rupee closed at 87.5775, down 0.1% for the day and more than 2% since the beginning of the year.
This marks the rupee as the worst-performing Asian currency in 2025, Reuters noted. Market uncertainty, driven by potential U.S. trade tariffs and foreign investment outflows, has added pressure to the currency. Short bets on the rupee have risen to their highest levels since mid-July 2022, according to a Reuters poll.
The 1-month 25-delta dollar-rupee risk reversal, a measure of volatility, also increased, indicating a higher cost of betting against the rupee. The dollar’s demand was further bolstered by the maturities in the non-deliverable forwards market.
The Reserve Bank of India likely intervened in the market through dollar-rupee buy/sell swaps on February 6, Reuters reported, adding that it is a move it has used recently to manage liquidity and mitigate the impact of dollar sales.
