The rupee slipped by 19 paise to 85.63 against the US dollar in early Monday trading, pressured by the ongoing global trade war sparked by the US's reciprocal tariffs and China's retaliatory measures. These developments have also sent global equity markets tumbling to record lows.
Forex traders noted that despite a sharp drop in crude oil prices and a weakening US dollar, the rupee remained under pressure due to persistent foreign fund outflows in line with the broader global sell-off.
They also pointed out that investor sentiment remained cautious as the Reserve Bank of India's Monetary Policy Committee began its three-day meeting to decide on key interest rates. The outcome from the six-member panel is expected on Wednesday.