Rupee Tumbles Past 90/$ as RBI Intervention Faces Pressure
Rupee Tumbles Past 90/$ as RBI Intervention Faces Pressure
The Indian rupee hits a fresh all-time low near 90 per dollar amid global price pressures and limited RBI support, fueling volatility and higher import costs.
The Indian rupee slumped to a record low around 90.37 against the US dollar at the close, after testing an intraday low of 90.49. It has fallen about 39 paise from the previous close of 89.98, marking a depreciation of 5.74% for the year so far. Traders cited surging global prices for precious metals, which pushed metal importers to rush for dollars and added to demand for the greenback. Analysts noted that the central bank’s intervention appeared limited, contributing to further volatility in the currency market.
RBI traders reportedly stepped in around the 90.42 and 90.45 levels, helping to pare some of the losses. Still, market participants point to subdued intervention in recent weeks as a key reason for the sustained pressure on the rupee, with investors wary of the direction of global cues. A note from Goldman Sachs echoed the sense of rising volatility in the short term.
Fundamentally, persistent foreign portfolio investor outflows continue to weigh on the currency. Foreign investors dumped Rs 16,104 crore worth of domestic equities in December, bringing total outflows to Rs 1.60 lakh crore in 2025. The depreciation comes amid expectations that a delay in the India-US trade deal and risk-off sentiment abroad could keep the rupee under pressure.
Looking ahead, traders are watching for resistance around 90.70 for the spot USD/INR and a crucial support level near 90.10. Analysts say the sentiment remains skewed toward a weaker rupee in the near term unless there is a renewed and more forceful RBI intervention or a shift in domestic inflows.
Cover image source: Rupee Falls To 90 Mark: Travel Costs Jump, Markets Rattle, And Experts Ask- Is This The New Base? 🔗
