Rupee plunges 45 paise to all-time low against US dollar in early trade on Feb 10

Domestic benchmark indices too opened lower on Monday as US President Donald Trump threatened to start imposing new 25 per cent tariff on all steel and aluminium imports

Mumbai: The rupee depreciated 45 paise to hit a record low of 87.95 against the US dollar in early trade on Monday weighed down by the strength of the American currency in the overseas market and a negative trend in domestic equities.

Forex traders said the dollar index was quoted at 108 gained after President Donald Trump said he was said to impose new 25 per cent tariffs on all steel and aluminium imports.

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

The Indian currency appreciated marginally and recovered 9 paise from its all-time low level to close at 87.50 against the US dollar on Friday February 7 after the Reserve Bank of India reduced the key lending rate by 25 basis points.

Reserve Bank Governor Sanjay Malhotra on Saturday (Feb 8) said that the market forces decide the value of rupee with respect to the US dollar and the central bank is not worried about day-to-day movement of the currency value.

Addressing the media after the meeting of Finance Minister Nirmala Sitharaman with the Reserve Bank board, Malhotra said the central bank focuses on the value of the rupee in the medium to long term.

Meanwhile, the domestic benchmark indices too opened lower on Monday as US President Donald Trump threat to impose tariff on all steel and aluminium imports, including those from Canada and Mexico.

The new tariffs are expected to be imposed from Monday (US time), with additional import duties expected later in the week.

Speaking to reporters aboard Air Force One on Sunday, Trump said he would also announce reciprocal tariffs, which would take effect almost immediately.

At 9.30 am, Sensex was trading at 77,575.91, down 284.28 points (0.37 per cent) while the Nifty was down 87.95 points (0.37 per cent) at 23,472.00.

JSW Steel and Tata Steel declined the most after Trump threatened to slap tariffs imports on steel and aluminium. Nifty Pharma was also down over fears that the US tariffs can spillover from metals to pharma products.