Rupee dives to record low, closes at 91.70 amid global turmoil
Rupee dives to record low, closes at 91.70 amid global turmoil
Rupee hits fresh record low of 91.70 per dollar amid global risk-off mood and rising dollar demand, marking fifth straight session of declines.
The Indian rupee slid to a fresh record low of 91.70 per dollar on Wednesday, capping a five-session slide on Dalal Street. Earlier, it opened around 91.08, and the session traded at higher levels before sliding to the record mark, reflecting persistent dollar strength and cautious risk appetite across markets.
Analysts say the move is driven by a mix of global risk-off sentiment and sturdy dollar demand, with persistent foreign fund outflows and higher energy imports adding to the pressure. 'The rupee's descent to a record low today reflects a combination of global risk aversion and dollar demand rather than a single domestic shock,' one strategist commented.
Geopolitical tensions—such as uncertainties around NATO members, U.S. interests in Greenland, and ongoing India-U.S. trade talk chatter—have kept sentiment fragile, weighing on risk assets and pushing the currency lower.
The fall breaches the 91-per-dollar level for the second time in recent sessions, underscoring macro headwinds facing the economy. While exporters may gain some punch from a cheaper rupee, households and businesses will feel higher costs for fuel, travel and many imported goods as the cycle tightens. The central bank has forex buffers and intervention tools, but currency volatility remains the name of the game for now.
