Rupee Slumps to 90 per Dollar, Hits All-Time Low
Rupee Slumps to 90 per Dollar, Hits All-Time Low
Rupee slides past the 90-per-dollar mark amid outflows, rising oil prices, and trade-deal uncertainty, with limited central bank intervention noted.
The Indian rupee slipped past the 90-per-dollar mark on Wednesday, setting a fresh record low as a confluence of external and internal factors weighed on sentiment. The currency traded around the 90 level for most of the session and touched an intraday low of 90.21 per dollar, traders said.
Foreign fund outflows continued to pressure the rupee, while crude oil prices firmed, raising import costs for Asia's third-largest economy. The combination of external demand for dollars and higher energy costs created a perfect storm for the local unit.
Market watchers noted that there was little RBI intervention during the session, leaving the rupee more exposed to market swings and volatility as it tested new lows.
Analysts cited the uncertain path of the India-US trade deal as a major hurdle, with delays adding to risk-off sentiment. A stronger dollar globally also contributed to the rupee's weakness, as investors preferred dollar-denominated assets amid risk aversion.
Experts say the currency could remain volatile in the near term unless there is credible policy action or improvement in trade talks. Some believe a relief rally could come if a deal materializes or if oil costs retreat, while others warn that the 90-per-dollar level could act as a psychological barrier that keeps traders cautious.
In practical terms, the slide translates into higher costs for firms and households anxious about rising import prices and inflation pressures.
Cover image source: Rupee breaches 90 to a dollar, falls 6 paise in early trade š
