MUMBAI, 5 FEB

The rupee plunged 39 paise to close at an all-time low of 87.46 (provisional) against the US dollar on Wednesday, as global trade war concerns fuelled risk aversion among investors.

Forex traders said the rupee is trading with a negative bias over global trade war as market participants mulled the impact of tariffs being imposed by the United States and China.

Moreover, rate cut concerns by the Reserve Bank of India and broad strength of the American currency in the overseas market dented investor sentiments further.

At the interbank foreign exchange, the rupee opened on a weak note at 87.13 and touched an intraday low of 87.49 against the American currency during the session.

The local unit finally settled at a record closing low of 87.46 (provisional), lower by 39 paise over its previous close.

On Tuesday, the rupee recovered 4 paise from its all-time low level to close at 87.07 against US dollar.

Trump is pressing ahead with a 10 per cent tariff on US companies importing things from China. On Tuesday, China retaliated by announcing its own tariffs on some US products and an antitrust investigation into Google.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.35 per cent lower at 107.58.