Rupee Breaches ₹89 Against US Dollar, Steep Single-Day Fall
The Indian rupee closed at ₹89.49 against the US dollar on Friday, marking its lowest level ever and slipping past the critical ₹89 per dollar barrier. The currency fell by 78 paise from its previous close of ₹88.71, making this its steepest one-day decline since early May this year.
Triggering Factors And Market Response
Traders cited a mix of weak domestic equity sentiment, global dollar strength, and expectations of limited intervention by the Reserve Bank of India (RBI) as contributing to the rapid drop. Some also pointed to trade-deficit concerns and slower FPI inflows. The breach of the ₹89 mark led to stop-loss orders being activated, further accelerating the rupee’s fall.
Implications For India’s Economy
The rupee’s decline raises cost pressures for oil imports and foreign debt servicing in India. Exporters may gain competitiveness, but importers and companies with dollar-linked liabilities could face headwinds. The central bank may decide whether to step in to stabilise the currency or allow a controlled weakening.
Outlook And What’s Next
Analysts will watch for the RBI’s response and foreign-portfolio flows in the coming days. If global sentiment remains weak and the dollar stays strong, the rupee may test new lows unless macro risks ease or policy support is stepped up.
