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Indian rupee depreciates on Tuesday despite RBI's liquidity measures

28 Jan 2025 Evaluate

Indian rupee witnessed worst day on Tuesday amid tariff threats by the US President Donald Trump. Traders overlooked the report that India's central bank announced a host of measures to inject liquidity in the banking system, including bond purchases and dollar/rupee swaps. The Reserve Bank of India will buy government bonds worth Rs 60,000 crore ($6.96 billion) in three tranches and conduct a 56-day variable rate repo auction worth Rs 50,000 crore on February 7. On the global front, ringgit closed lower against the US dollar on Tuesday, pressured by subdued global risk sentiment and ongoing developments in United States tariffs. 

Finally, the rupee ended at 86.57 (Provisional), depreciated by 26 paise from its previous close of 86.31 on Monday. The currency touched a high and low of 86.57 and 86.50 respectively.

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