Rupee Breaches 90: Currency Slides to Fresh Record Low Despite Strong Growth Story

INR under pressure as 90/$ gives way

In Wednesday’s session, the rupee extended recent losses to touch 90.13 per US dollar in interbank dealings, its weakest level ever, before stabilising just below 90. The move follows an all‑time closing low of 89.87 on Tuesday, underlining how global risk aversion and trade‑deal limbo are overshadowing India’s robust 8%‑plus GDP growth prints.​

Key highlights

Rupee opens down 0.1% at 89.97 per dollar versus 89.87 previous close; trades through 90 to a new intraday low above 90.10.​

Currency has lost about 4–5% against the dollar in 2025, ranking among Asia’s weakest performers amid persistent FPI equity outflows.​

Drivers include stalled India–US trade talks, strong importer demand for dollars and fading expectations of early US Federal Reserve rate cuts.​

RBI is seen intermittently selling dollars via state‑run banks to curb volatility, but allowing a gradual reset higher in USD/INR rather than defending any single level.​

Analysts warn that sustained trade above 90 could open room towards 91, though intervention and healthy FX reserves may slow the pace of depreciation.​

Sources: Reuters FX market reports; Economic Times forex coverage; Financial Express currency market report; Free Press Journal; Nikkei Asia.