Rupee Continues its Decline and Hits a New Low — 90.58 per US Dollar
The Indian rupee extended its losing streak on Monday, sliding to an all-time trough of 90.58 against the U.S. dollar. This marks a second consecutive week of record lows after it previously touched 90.55 on Friday. The currency remains pressured by a combination of familiar headwinds, including delays in a potential U.S. trade deal, persistently weak capital inflows, and a widening trade deficit. Analysts attribute the drop to a mix of factors, such as strong corporate demand for dollars and punitive 50% U.S. tariffs on Indian exports.
Rupee Drops to 90 Per Dollar Amid Trade Uncertainty, Rising Dollar Demand, and Higher Oil Prices
So far this year, the rupee has fallen more than 5% against the greenback, ranking it as the third-worst performer among 31 major global currencies, trailing only the Turkish lira and Argentina’s peso. This slide occurs even as the U.S. dollar index has eased by over 7%. Crossing the 90 mark is especially noteworthy because it equates to half of the rupee’s value back in 2011. Market watchers say this milestone adds pressure on the RBI governor to strike a careful balance between allowing currency flexibility and maintaining broader market stability.
In recent months, the Reserve Bank of India (RBI) has frequently stepped in to dampen the rupee’s slide. Yet, its interventions have appeared less potent since the currency breached the 88.80 level and subsequently moved beyond 90 per dollar.
The RBI remains a pivotal actor in the rupee’s international trading landscape, including activity in non-deliverable forwards (NDFs) settled in dollars. Its interventions are coordinated through the Bank for International Settlements and involve select major banks across trading hubs such as Singapore, Dubai, and London.
