MUMBAI: The Indian rupee slipped to a record low on Thursday, deepening its slide past the 90 per dollar mark as the absence of a trade deal with the US continued to weigh and corporate dollar outflows added to the pressure.
The rupee weakened to 90.4675 against the US dollar, eclipsing its previous all-time low of 90.42 hit on December 4.
The rupee is Asia’s worst-performing currency this year, having fallen more than 5 percent against the dollar year-to-date, as steep US tariffs of up to 50 percent on Indian goods hurt exports to its biggest market while also diminishing the appeal of local equities for foreign investors.
Foreign investors have sold nearly USD18 billion of local stocks on a net basis over 2025 so far, making India one of the worst-hit markets in terms of portfolio outflows.
On Thursday, the Reserve Bank of India likely intervened to help the rupee avert steeper losses, five traders told Reuters.
One of the traders characterised the central bank’s intervention as mild and likely intended to slow the rupee’s fall instead of holding it at a specific level.
“A record October goods trade deficit and muted capital inflows — amid uncertainty around the India-US trade deal — point to a further deterioration in the net Balance of Payments (BoP) position in Q4,” analysts at Goldman Sachs said in a note.
“Meanwhile, reduced FX intervention by the RBI over the past one to two weeks has increased INR volatility.”
The RBI will tolerate a weaker rupee as the country’s external sector grapples with multiple headwinds, Reuters reported last week.
Traders and analysts reckon that a breakthrough in the US- India trade negotiations is key for a reversal in the rupee’s fortunes.