Rupee continues its slide, dropping to a fresh record near 90.58 per US dollar.
On Monday, the rupee extended its decline to an all-time low of 90.58 against the dollar, marking the second consecutive week of record lows after slipping to 90.55 last Friday. The currency faces persistent headwinds, including delays in a valued U.S. trade agreement, weak capital inflows, and a widening trade deficit. Analysts attribute the downturn to a combination of factors such as robust corporate demand for dollars and steep 50% U.S. tariffs on Indian exports.
Rupee Hits 90 per Dollar Threshold Amid Trade Uncertainty, Rising Dollar Demand, and Higher Oil Costs
In 2025 alone, the rupee has fallen more than 5% against the greenback, placing it as the third-worst performer among 31 major global currencies, behind only the Turkish lira and Argentina’s peso.
The move comes even as the dollar index has eased by over 7%. Reaching the 90 mark is particularly noteworthy because it equates to roughly half of the rupee’s value back in 2011. Analysts warn that this milestone increases pressure on the RBI governor to strike a careful balance between currency flexibility and overall market stability. In recent months, the Reserve Bank of India (RBI) has frequently intervened to curb the rupee’s slide, yet its support has been less aggressive since the currency breached the 88.80 level and then surpassed 90 per dollar.
The RBI remains a pivotal actor in the rupee’s international trading, including through non-deliverable forwards (NDFs) settled in dollars. Interventions are coordinated via the Bank for International Settlements, working with a select group of major banks in key hubs such as Singapore, Dubai, and London.
