Rupee hits record low of 90.46 vs USD; RBI likely intervenes to limit losses - The Economic Times
The Indian rupee fell to a fresh record low of 90.46 against the US dollar, reflecting pressure from global market uncertainty and rising demand for the American currency. Traders noted unusual volatility during the session, suggesting that the Reserve Bank of India likely intervened to slow down the rupee’s decline. Although the domestic currency has been weakening for several weeks, Thursday’s sharp drop raised concerns about imported inflation, higher fuel costs, and the broader impact on the Indian economy. Market participants believe the RBI is carefully monitoring the situation and may continue to step in if depreciation becomes excessive. Meanwhile, stronger US economic data and fears of prolonged high interest rates have boosted the dollar, adding further strain on emerging-market currencies. Analysts expect the rupee to remain under pressure but say timely intervention and stable domestic fundamentals could help limit steep losses in the coming days.
The Key points
- Rupee hits a record low of 90.46 against the US dollar.
- Sharp intraday volatility hints at possible RBI intervention.
- Global demand for the dollar continues to rise.
- Weak rupee fuels concerns about imported inflation.
- Higher crude oil prices put additional pressure on the currency.
- Strong US economic data supports further dollar strength.
- Investors expect prolonged elevated US interest rates.
- Emerging-market currencies face broad downside risk.
- RBI likely monitoring forex markets to manage volatility.
- Analysts predict continued pressure but controlled depreciation.
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