The Indian rupee opened at a record low of ₹ 89.97 per US dollar on Wednesday and quickly slid further to around ₹ 90.14, underscoring intense pressure on the currency.
This sharp fall follows two days of steep depreciation. On Monday, despite a strong 8.2 % GDP print for Q2, the rupee crashed to record lows — hitting around ₹ 89.76–89.83 before slipping past prior lows of ₹ 89.49. On Tuesday, it closed near ₹ 89.95/US$, its weakest-ever finish.
Analysts attribute the slide to a toxic mix of heavy dollar demand from importers, a widening trade deficit, sluggish foreign-portfolio inflows, growing global uncertainty and a lack of progress on the US–India trade agreement. The mood has been worsened by maturing non-deliverable forward (NDF) positions and speculative dollar demand.
Despite strong domestic growth and buoyant equity markets, those fundamentals have failed to bolster the rupee — which remains among Asia’s worst-performing currencies this year. The growing pressure has forced Reserve Bank of India (RBI) to intervene, but market participants warn that renewed depreciation — possibly breaching the psychologically crucial ₹ 90 per dollar mark — cannot be ruled out if outflows and external imbalance persist.
