Rupee Falls to Record Low of 90.46 Against Dollar
The Indian rupee touched a new record low of 90.46 against the US dollar on Thursday, reflecting continued pressure on the currency from both global and domestic factors. The decline marks the weakest level ever recorded for the rupee.
Market Factors Driving the Fall
Traders attributed the depreciation to strong dollar demand from corporates, foreign investor outflows, and uncertainty surrounding stalled India–US trade talks. These pressures have kept sustained upward momentum on the dollar, pushing the rupee lower.
RBI Likely Stepping In
The Reserve Bank of India (RBI) is understood to have intervened in the foreign exchange market, selling limited amounts of dollars to slow the pace of depreciation. Officials emphasised that the goal is to contain excessive volatility, not defend a particular exchange rate.
Impact on Economy and Markets
A weaker rupee increases the cost of crude oil, imported goods, and overseas debt servicing, potentially adding inflationary pressure. However, exporters may benefit from improved dollar earnings. Despite RBI liquidity measures, the broader market remained cautious.
What Lies Ahead
Currency strategists say the rupee’s direction will depend on global risk sentiment, capital flows and the outcome of trade negotiations. Companies with significant foreign currency exposure remain alert to further volatility.
