US EditionWhy Has the Rupee Hit a Record Low? What Does It Mean for Indians?
The rupee's decline to 89.95 followed Rs 1,171 crore equity sell-offs by foreign investors amid ongoing import demand and trade deal uncertainty.
- On Tuesday, the rupee pierced the psychological 90-per-dollar level intraday before settling at an all-time low of 89.95, as short-covering and importer demand pressured the currency.
- FII sell-offs on Tuesday, with equities worth Rs 1,171.31 crore, contributed to pressure as the rupee settled at 89.95 amid trade-deal uncertainty.
- Markets saw risk-off moves as technical thresholds approached, with Sensex down 503.63 points, Nifty off 143.55, and key technical levels at 88.80–89.00, 90.00, and 91.00 hosting buy-stop orders.
- Kotak Securities' Anindya Banerjee cautioned that the Reserve Bank of India must stay active below 90.00 to prevent speculators becoming comfortable, as a decisive close above 90.00 could attract momentum traders.
- External cues showed the dollar index at 99.41, and Brent crude traded 0.25 per cent lower at USD 63.03, weighing on the rupee, forex traders said.
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15 Articles
Why has the rupee hit a record low? What does it mean for Indians?
The rupee has fallen nearly five per cent against the dollar from the beginning of the year. Of that, 0.8 per cent was in November alone. The development comes as banks continue to purchase the US dollar at higher levels and foreign institutional investors (FIIs) continue to exit the stock market. India is also under pressure over the steep tariffs imposed by the Trump administration as the two countries continue to negotiate a trade deal
Rupee breaches 90-mark against dollar: US-India trade deal uncertainty, FPI outflows weighing on sentiments
The Indian rupee hit a record low of 90.16 against the dollar due to uncertainty over the US-India trade deal, FPI equity selling, and weak US currency supply. Experts predict continued pressure on the rupee amid market volatility.
Rupee falls to 90/USD on persistent outflows, trade deal limbo
The Indian rupee has fallen below the significant 90 mark against the U.S. dollar. This marks a continuation of its recent struggles. Weak trade and investment flows are contributing factors. Concerns about a stalled trade deal with Washington are also weighing on the currency. The rupee reached a new all-time low on Wednesday.
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