Indian Rupee Hits Record Low: Breaches 90.46 Against US Dollar

Analysts attribute the rupee’s slide to strong US economic data, expectations of prolonged higher interest rates by the Federal Reserve, and foreign capital outflows. Rising crude oil prices and geopolitical uncertainties have further pressured India’s external balances. While the Reserve Bank of India (RBI) has intervened in recent sessions to stabilize volatility, traders note that the rupee’s breach of the 90-mark reflects structural challenges in the global currency market. Exporters may benefit from a weaker rupee, but importers and inflation-sensitive sectors face rising costs.  

Notable updates  
• Rupee hits record low at 90.4675 per US dollar on Dec 11  
• Opened at 90.4225, down 0.06% from previous close  
• Dollar strength and Fed’s higher-for-longer stance weigh on emerging currencies  
• Rising crude oil prices and capital outflows add pressure on rupee  
• RBI expected to continue interventions to curb volatility  

Major takeaway  
The rupee’s record low underscores India’s vulnerability to global monetary tightening and commodity shocks, highlighting the need for vigilant policy support and diversified trade strategies.  

Sources: Reuters, Economic Times, Business Standard, Moneycontrol