Rupee Slips to Record Low of ₹89.79 Against US Dollar
The Indian rupee weakened sharply today, hitting a provisional all-time low of ₹89.79 against the US dollar in intraday trade. The currency opened at ₹89.45, then slid by 34 paise over the previous session’s close amid a drop in domestic equities and heavy dollar demand from importers.
Key Factors Behind the Decline
Traders attributed the depreciation to a strong US dollar, rising global crude oil prices, persistent foreign capital outflows, and India’s widening trade deficit. Demand for dollars from importers — especially for crude oil, gold and other essentials — put sustained pressure on the rupee.
Economic Growth Fails to Shield Currency
Despite India’s strong economic performance, including recent upbeat GDP data, the rupee remained under pressure. Analysts said that global factors and external financial flows are currently outweighing domestic growth, limiting any uplift the economy might provide to the currency.
Outlook: Caution Amid External Headwinds
Market participants expect continued volatility in the near term. Unless foreign inflows return, or import demand eases, the rupee could face further downside. Observers note the next few weeks will be crucial as global oil prices, capital flows and dollar demand shape the currency’s trajectory.
