Rupee Slumps to Fresh Lifetime Low Near 90 per Dollar
Rupee Slumps to Fresh Lifetime Low Near 90 per Dollar
The rupee hits a record low around 90.52 against the dollar as trade deficits widen and dollar demand stays firm, prompting RBI intervention.
India's currency paved a fresh path to weakness, slipping to a life-time low around 90.5 per dollar as traders weighed a widening trade deficit, persistent corporate dollar demand, and the effects of U.S. tariffs. The slide comes despite ongoing interventions by the Reserve Bank of India, aimed at stabilizing markets and curbing further depreciation. The rupee’s trajectory has now logged over a 5% decline this year, signaling sustained pressure on India’s balance of payments and investor sentiment. Market watchers note that the RBI has been stepping in to smooth volatility, using spot and forward operations to prevent a sharper slide that could ripple through borrowing costs and inflation expectations. In intraday sessions, the rupee traded near 90.4-90.5, and reports from different trading windows show it hovering around 90.11 to 90.42 in early and late trade, underscoring a volatile week for the currency. Analysts emphasize that the pace of depreciation will hinge on global risk appetite, oil prices, and policy signals from major economies. As the market awaits further cues from central banks and tariff negotiations, the currency is expected to remain sensitive to headlines that influence capital flows and risk sentiment.
Cover image source: Rupee falls 17 paise to 90.11 against U.S. dollar in early trade 🔗
