Rupee Hits Record Low as RBI Holds Fire on Interventions
Rupee Hits Record Low as RBI Holds Fire on Interventions
Rupee slips to a record 90.63 per dollar as persistent outflows and US–India trade tensions press the currency, with the RBI seen prompting a measured depreciation to bolster export competitiveness.
The Indian rupee slid to an all-time low of 90.63 per dollar, rattling markets as foreign fund outflows persist and US–India trade tensions simmer. A widening trade deficit adds to the pressure, and interventions by the central bank have been relatively muted in recent sessions.
Some market watchers suggest the RBI may be taking a deliberate stance, allowing controlled depreciation to support export competitiveness amid global tariff pressures. While a 2–3% annual fall is often considered manageable, authorities appear willing to tolerate a steeper slide for now.
Investors are weighing what the move means for borrowing costs, imports, and inflation, as well as the health of equity markets. If the rupee weakens further, debt-servicing costs for companies with foreign currency borrowings could rise, and consumer prices may feel upward pressure through imported goods.
Looking ahead, analysts say the trajectory will hinge on the pace of external funding flows and progress in trade negotiations with the United States. The question remains: how far could the rupee fall from here, and what criteria will guide RBI's next steps?
