Indian Rupee Hits Fresh Record Low Against US Dollar

The Indian rupee fell to a fresh record low of 91.7425 against the US dollar in Friday’s trading session, underscoring continued pressure on emerging market currencies. The depreciation comes amid strong demand for the US dollar, driven by expectations of prolonged higher interest rates in the United States and global risk aversion.  

Analysts note that foreign portfolio outflows and widening trade deficit concerns have added to the rupee’s weakness. While the softer currency could support exporters, it raises challenges for importers and may increase inflationary pressures through higher costs of crude oil and other essential imports.  

Market participants are closely watching the Reserve Bank of India’s stance, as the central bank has historically intervened to curb excessive volatility. The record low highlights the delicate balance India faces between maintaining currency stability and supporting economic growth.  

Key Highlights  
Rupee weakens past 91.7425 against US dollar, hitting record low  
Global dollar strength and US interest rate outlook weigh on emerging currencies  
Foreign portfolio outflows and trade deficit concerns add pressure  
Exporters may benefit, but import costs and inflation risks rise  
RBI expected to monitor volatility and intervene if necessary  

Future Outlook  
The rupee’s record low signals continued vulnerability to global financial conditions. Sustained weakness could challenge India’s inflation management and import bill, while exporters may gain short-term advantages. Policymakers will need to balance currency stability with growth priorities as global uncertainties persist.  

Sources: Reuters, Economic Times, Business Standard