Market News
Rupee sticks to losing run on mounting tariff worries, persistent investor outflows - REUTERS
MUMBAI, Feb 10 (Reuters) - The Indian rupee weakened to its all-time low on Monday in the wake of U.S. President Donald Trump announcing fresh tariff plans, which drove regional currencies lower, while persistent portfolio outflows remained a sore point for the local unit.
The rupee weakened to 87.95 against the U.S. dollar before closing at 87.4750, down slightly on the day.
The currency managed to pare most of its losses due to strong central bank intervention, exporters' dollar selling and profit-booking by speculators holding long USD/INR positions, traders said.
Asian currencies were mostly weaker, with the offshore Chinese yuan down 0.2% at 7.31. The dollar index was down slightly at 108.2.
Trump said he will announce new 25% tariffs on all steel and aluminium imports into the U.S. later on Monday, as well as reciprocal tariffs on Tuesday or Wednesday that will be applied to all countries and match the tariff rates levied by each nation.
"While the details are still unknown, we note that India looks more vulnerable in this regard," MUFG Bank said in a note, referring to the reciprocal tariffs.
