Rupee Slides To Fresh Record Low Beyond 95.79 Against The Dollar

Record Low Triggers Fresh Currency Jitters

Breaking to a fresh all-time low signals that underlying depreciation pressures on the rupee remain intact despite periods of stability. The breach of 95.7950 has heightened concerns on imported inflation, especially for crude-linked products, and could complicate policy management if the slide accelerates. Traders report stop-loss driven dollar buying once previous lows were taken out, adding to the downward momentum.

Global And Domestic Drivers In Focus

The rupee’s weakness is being driven by a combination of a firmer US dollar on lingering higher-for-longer rate expectations, risk-off sentiment in global markets, and local demand for dollars from importers and corporates. Investors are also watching equity flows, with any sustained FPI selling likely to keep the currency under pressure. Market participants expect the central bank to continue smoothing sharp intraday moves through discreet intervention, even if it allows a gradual adjustment in line with global peers.

Key Highlights

• Rupee weakens past 95.7950 per US dollar to a record low
• Down around 0.1% on the day amid renewed depreciation pressure
• Move raises concerns on imported inflation and policy trade-offs
• Stronger US dollar, higher crude and FPI flows driving sentiment
• RBI expected to manage volatility while tolerating orderly adjustment

Sources: Live interbank forex quotes, dealer commentary, market screens