Indian Rupee Hits All-Time Low Against US Dollar Again; Falls Beyond 90 Mark
The Indian rupee has crashed to a fresh all-time low, crossing 90.48 against the US dollar amid India-US trade deal delays, rising dollar demand, and heavy foreign fund outflows. RBI is intervening to control volatility.
The Indian rupee plunged to a fresh all-time low on Thursday, sliding past the crucial ₹90 per US dollar level again amid rising concerns over delays in the India–US trade agreement and strong corporate demand for dollars.
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During the day, the rupee touched an intra-day low of 90.48, surpassing the previous historic low of 90.42 recorded earlier this month. The currency finally closed at 90.33, down 39 paise from the previous session.
Forex traders said sustained foreign fund outflows, global uncertainty, and mounting pressure from India’s widening trade deficit are deepening the rupee’s downward trend.
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Rupee Down 5% in 2025 — Among the Worst Performers Globally
The rupee has already declined more than 5% in 2025, making it the third-worst performing major currency among 31 global currencies — ahead only of the Turkish lira and Argentina’s peso.
This sharp fall is occurring despite the US dollar index dropping over 7%, highlighting India-specific economic pressures.
Key contributors to the rupee’s slide include:
- Rising trade deficits
- Strong corporate demand for dollars
- 50% US tariffs on Indian goods
- Delays in India-US trade negotiations
- Outward foreign capital movement
- Weak investor sentiment
Economists note that the rupee is now nearly 50% weaker than its 2011 value, increasing challenges for policymakers and import-dependent industries.
RBI Steps In to Prevent Sharper Fall
According to multiple traders, the Reserve Bank of India (RBI) intervened aggressively in the forex market on Thursday to prevent further depreciation.
RBI is believed to have used:
- Spot market interventions
- NDF (Non-Deliverable Forward) market operations
- Support through Bank for International Settlements (BIS) channels
The central bank’s strategy aims to stabilize volatility while maintaining rupee flexibility.
CCTV Data, Market Indicators Point to Heightened Pressure
Rupee trading opened at 89.95, but weak sentiment quickly pushed it lower. Analysts highlighted that comments by Chief Economic Advisor V. Anantha Nageswaran, suggesting the trade deal may be finalised by March, added to market volatility.
Research Analyst Anuj Choudhary noted:
“The rupee hit a fresh all-time low amid uncertainty over the India-US trade deal. RBI intervention may provide some support, but the bias remains negative.”
The USDINR spot is expected to fluctuate between 90.10 and 90.75.
US Trade Remarks Add New Complications
During a Senate hearing, USTR official Jamieson Greer stated that the US received its “best-ever offers” from India but raised concerns about restrictions on US agricultural items such as corn, cotton, wheat, and soybeans.
These comments come as both countries attempt to close the first phase of a Bilateral Trade Agreement (BTA) — but uncertainty remains high.
Global Market Factors Also Weigh on Rupee
Additional influences include:
- Weak crude oil prices, with Brent trading at USD 61.43
- FII outflows, totalling ₹1,651 crore on Wednesday
- Rising demand for safe-haven assets
- Mixed signals from global equity markets
On the domestic front, the Sensex jumped 426 points to end at 84,818, while Nifty closed 140 points higher at 25,898 — offering some cushion to currency markets.
With the rupee breaching a new all-time low of 90.48, India faces increasing macroeconomic pressure driven by prolonged trade deal uncertainty, global market volatility, and surging dollar demand.
Munsif News 24×7 will continue to track rupee movement, RBI intervention strategies, and developments in the India-US trade negotiations.
