Rupee
Rupee in freefall! Indian currency hits record low of 90.58 against USD
Mumbai/IBNS: The Indian rupee slid to a record low of 90.58 against the US dollar on Monday, extending its recent losing streak, media reports said.
The currency had already weakened to 90.55 per dollar last Friday, signalling sustained pressure on the rupee.
Analysts trace the slide back to April 2025, when US President Donald Trump announced tariffs on Indian goods, triggering concerns over exports and trade balances. The pressure intensified in December amid a widening current account deficit.
Uncertainty surrounding India-US trade negotiations, rising corporate demand for dollars, and a widening trade deficit have further accelerated the rupee’s decline.
Despite intervention by the Reserve Bank of India (RBI), analysts believe the currency remains under stress.
"We think the rupee is suffering on two fronts. First, exports have weakened in Q4CY25 due to front-loading earlier in the year before tariffs kicked in.
"On the other hand, consumption recovery during the festival season has pushed up import demand, adding stress to the external account. Elevated gold imports are worsening the situation," Emkay Global told Business Today.
The weakening rupee has also triggered foreign fund outflows, weighing heavily on equities. The BSE Sensex fell nearly 400 points, while the NSE Nifty 50 slipped to around 25,900 in early trade, before both indices pared some losses later in the session.
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