Rupee Slips Past 89 per Dollar to Record Low as Markets Falter
Rupee Slips Past 89 per Dollar to Record Low as Markets Falter
The Indian rupee slid past 89 per dollar in a sharp decline, its biggest one-day drop in over three months amid weak equity cues and global headwinds.
The Indian rupee slid sharply on Friday, crossing the 89-per-dollar mark for the first time in more than three months, signalling renewed strain in the currency market as global cues and weak domestic stocks weighed on demand for the local unit.
Across global and domestic markets, investor risk appetite cooled, with Indian equity benchmarks posting losses and IT shares leading the retreat. The slide in the rupee came despite a relatively calm external backdrop, underscoring the sensitivity of the currency to shifting risk sentiment.
Traders noted that the latest move is also tied to flat growth in the country's core infrastructure sectors, which cooled expectations for a quick domestic recovery and added to currency volatility.
Analysts cautioned that a weaker rupee raises import costs and could translate into higher inflation if sustained, even as some traders said the fall may prove temporary if markets find footing in coming sessions.
Market watchers will be looking to central bank cues and any policy signals in the days ahead, with traders watching for interventions or guidance to stabilize the currency and temper volatility.
With the 89-per-dollar level in sight, the session remains fluid, and investors are bracing for further moves as global headlines continue to drive sentiment.
Cover image source: Rupee gains 5 paise to 88.63 against U.S. dollar in early trade 🔗
