Rupee slips 25 paise to close at all-time low of ₹90.74 against US dollar
The Indian rupee weakened by 25 paise to close at a record low of ₹90.74 against the US dollar. Traders cited strong global dollar demand and weak domestic market sentiment as key reasons behind the currency’s decline.
The Indian rupee weakened significantly and closed at a fresh all-time low of ₹90.74 against the US dollar, falling 25 paise in daily trade. The sharp decline reflects persistent strength in the US currency and sustained selling pressure in domestic markets.
Forex traders said that robust demand for the US dollar, driven by global economic factors, pushed the rupee down. In addition, weak risk sentiment among investors contributed to capital outflows, adding pressure on the domestic currency. The widening gap between US and Indian interest rates also made dollar assets more attractive to global funds.
The fall comes as global markets reacted to data showing resilience in the US economy, which strengthened expectations of higher interest rates abroad. A strong dollar often makes emerging market currencies like the rupee weaker, especially when overseas investors reduce exposure to riskier assets.
Domestic equity markets also witnessed selling headwinds, which partly weighed on the rupee. Broader weakness in local equities can lead foreign investors to withdraw capital, increasing demand for the dollar and putting further pressure on the rupee.
Analysts noted that the current level is a major psychological barrier for the Indian currency. They said that weakness in crude oil prices or supportive monetary policy action could help stabilise the rupee, but for now the trend remains skewed to the downside.
The Reserve Bank of India regularly intervenes to support the rupee when volatility spikes, though its actions are not always visible. Market participants will watch central bank guidance, global monetary policy cues and macroeconomic data closely in the near term.
For importers and corporates dependent on foreign currency, a weaker rupee can raise costs. Meanwhile, exporters may see some benefit as Indian goods become relatively cheaper in global markets. However retail inflation could face upward pressure if currency weakness translates into higher import prices.
Investors and businesses will be monitoring the currency closely as global cues and domestic policy developments unfold in the coming days.
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