India, Feb. 10 -- The rupee plunged 44 paise to hit an all-time low of 87.94 against the US dollar in early trade on Monday.

This comes at a time when the rupee has already become Asia's worst-performing currency of the year after experiencing a series of record lows, according to a Bloomberg report which cited brokerage firm Nomura.

This is also expected to get worse as the Reserve Bank of India (RBI) may continue to build up its foreign exchange reserves, according to a Bloomberg report.

"With the RBI maintaining its FX stance, we see a risk of rupee underperformance, as the central bank may continue to favor building a substantial FX reserves buffer," the report quoted Nomura as saying.

The RBI cut the benchmark repo rate by 25 bas...