The Indian rupee has hit a new low, falling past 87 against the dollar, as traders expect the Reserve Bank of India (RBI) to start cutting interest rates this week, further weakening its value. According to most analysts, the RBI will begin its easing cycle on Friday, fueled by signs that the central bank is relaxing its grip on the currency under its new chief. The fall in the rupee comes as a result of US tariffs and their impact on Asian markets, which have rattled investor confidence. As the Modi government presents its first full-year budget in its third term, traders are betting on a weakening rupee amid rate-cut expectations.
Source: https://www.bloomberg.com/news/articles/2025-02-03/rupee-set-to-extend-slump-to-new-record-on-india-rate-cut-bets