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( As on 07/02/2025 11:00)

Rupee recovers 16 paise from all-time low level to 87.43 against US dollar

The rupee recovered 16 paise from all-time low closing level to 87.43 against the US dollar in early trade on Friday, ahead of the Reserve Bank of India's monetary policy announcement.

Forex traders said there is an overall negative bias in the rupee as market participants are projecting RBI to cut rates by 25 bps.

While a rate cut could help ease some of the pressure by improving liquidity and attracting foreign investments, it would also lead to an increase in rupee supply, which could further weaken the currency and exacerbate depreciation pressures, they said.