{"id":3732,"date":"2025-02-05T15:00:35","date_gmt":"2025-02-05T15:00:35","guid":{"rendered":"https:\/\/www.niftytrader.in\/nifty-demo\/?p=3732"},"modified":"2025-05-13T16:39:23","modified_gmt":"2025-05-13T11:09:23","slug":"rupee-falls-to-record-low-amid-rbi-rate-cut-speculation-and-stop-loss-triggers","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/rupee-falls-to-record-low-amid-rbi-rate-cut-speculation-and-stop-loss-triggers\/","title":{"rendered":"Rupee Falls to Record Low Amid RBI Rate Cut Speculation and Stop-Loss Triggers"},"content":{"rendered":"<h2><strong>Highlights:<\/strong><\/h2>\n<ul>\n<li><strong>Rupee hits an all-time low of \u20b987.4875 before closing at \u20b987.4650, down 0.4%<\/strong><\/li>\n<li><strong>Indian currency is the worst-performing in Asia, down over 2% in 2025<\/strong><\/li>\n<li><strong>Market anticipates a 25-basis point rate cut by the RBI later this week<\/strong><\/li>\n<li><strong>Persistent foreign outflows, U.S. tariff uncertainty, and bearish sentiment weigh on the rupee<\/strong><\/li>\n<li><strong>State-run banks attempted to provide support near \u20b987.25, but stop losses accelerated the decline<\/strong><\/li>\n<\/ul>\n<h2><strong>Rupee\u2019s Performance and Market Trends<\/strong><\/h2>\n<p>The <strong>Indian rupee depreciated to a record low on Wednesday<\/strong>, touching <strong>\u20b987.4875 against the U.S. dollar<\/strong> before closing slightly higher at <strong>\u20b987.4650<\/strong>, reflecting a <strong>0.4% intraday decline<\/strong>.<\/p>\n<h3><strong>Factors Driving the Decline:<\/strong><\/h3>\n<ol>\n<li><strong>Anticipation of an RBI Rate Cut:<\/strong>\n<ul>\n<li>Traders positioned themselves for a potential <strong>25-basis point rate cut<\/strong> by the <strong>Reserve Bank of India (RBI)<\/strong>, adding to the rupee\u2019s weakness.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Bearish Market Sentiment:<\/strong>\n<ul>\n<li>The rupee has fallen <strong>over 2% in 2025<\/strong>, making it the <strong>worst-performing Asian currency<\/strong> so far this year.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Foreign Outflows &amp; Trade Uncertainty:<\/strong>\n<ul>\n<li>Continued <strong>foreign portfolio outflows<\/strong> and <strong>uncertainty over U.S. trade tariffs<\/strong> have further pressured the currency.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Stop-Loss Triggers:<\/strong>\n<ul>\n<li>The rupee&#8217;s <strong>sharp decline in the afternoon session<\/strong> triggered <strong>stop-loss orders<\/strong>, exacerbating the fall.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Dollar Demand from Foreign Banks &amp; Importers:<\/strong>\n<ul>\n<li>Importers engaged in <strong>panic buying of U.S. dollars<\/strong>, further adding to rupee depreciation.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h2><strong>Market Intervention &amp; Dollar Index Performance<\/strong><\/h2>\n<ul>\n<li><strong>State-run banks attempted to support the rupee<\/strong> near the \u20b987.25 level through <strong>dollar sales<\/strong>, but the support was short-lived.<\/li>\n<li><strong>The U.S. dollar index declined by 0.4%<\/strong> on Wednesday, while most <strong>Asian currencies gained<\/strong>, yet the rupee failed to capitalize on the trend due to domestic factors.<\/li>\n<\/ul>\n<h3><strong>Impact of U.S. Tariffs:<\/strong><\/h3>\n<ul>\n<li>The rupee <strong>fell past \u20b987 on Monday<\/strong> following <strong>U.S. President Donald Trump\u2019s tariff announcements<\/strong> on <strong>Canada, Mexico, and China<\/strong>.<\/li>\n<li>Some relief came on Tuesday after <strong>tariff delays on Canada and Mexico<\/strong> were announced.<\/li>\n<\/ul>\n<h2><strong>RBI\u2019s Stance and Market Expectations<\/strong><\/h2>\n<p>Analysts believe the <strong>RBI has become more tolerant of rupee depreciation<\/strong> as it prioritizes economic growth. However, uncertainty remains around the scale of policy action.<\/p>\n<h3><strong>Nomura\u2019s Outlook:<\/strong><\/h3>\n<ul>\n<li>The brokerage <strong>expects a 25-basis point rate cut this week<\/strong> but sees a <strong>low probability of a more aggressive policy shift<\/strong>.<\/li>\n<li>The <strong>global economic backdrop remains fluid<\/strong>, which may lead the RBI to <strong>take a cautious approach<\/strong> rather than opt for an outsized rate cut or a significant change in monetary stance.<\/li>\n<\/ul>\n<h2><strong>\u00a0Market Remains on Edge<\/strong><\/h2>\n<p>With the <strong>RBI\u2019s monetary policy decision approaching<\/strong>, investors remain cautious. The rupee&#8217;s trajectory in the coming days will largely depend on <strong>RBI\u2019s policy stance, foreign investor flows, and global trade developments<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Highlights: Rupee hits an all-time low of \u20b987.4875 before closing at \u20b987.4650, down 0.4% Indian currency is the worst-performing in Asia, down over 2% in 2025 Market anticipates a 25-basis point rate cut by the RBI later this week Persistent foreign outflows, U.S. tariff uncertainty, and bearish sentiment weigh on the rupee State-run banks attempted [&hellip;]<\/p>\n","protected":false},"author":1,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[615],"tags":[],"ppma_author":[41],"class_list":{"0":"post-3732","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-stock-market-news"}," _eael_post_view_count":0,"authors":[{"term_id":41,"user_id":1,"is_guest":0,"slug":"niftynews","display_name":"NiftyTrader","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/01\/Logo-1.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=3732"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3732\/revisions"}],"predecessor-version":[{"id":3734,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/3732\/revisions\/3734"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/3733"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=3732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=3732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=3732"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=3732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}