Rupee Continues To Slide to Record Low, Opens at 90.41 Against Dollar

The Indian rupee continued its downward trend on Thursday, opening 22 paise lower at 90.41 against the US dollar, marking a new record low for the domestic currency. The slide follows a string of losses and comes amid persistent foreign institutional outflows and ongoing uncertainty in global markets.

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Record Breach of 90 Mark

The rupee breached the psychologically important 90-per-dollar threshold for the first time on Wednesday, closing at 90.19. Thursday’s opening at 90.41 signals that the pressure on the currency has not eased, with the dollar-rupee pair gaining over 1% in the last five sessions. The currency has been under steady selling pressure, marking its sixth consecutive month of depreciation.

Factors Driving Depreciation

Persistent outflows from foreign institutional investors have played a major role in the rupee’s recent decline. Global investors are pulling money out of Indian markets, adding pressure on the currency. Uncertainty surrounding the India–US trade deal and the limited intervention by the Reserve Bank of India have further weighed on sentiment. Even with some relief from a weaker US dollar index, the rupee has not managed to regain its strength.

Impact on Domestic Markets

The rupee’s weakness has coincided with a fall in domestic equities, with both the Sensex and Nifty closing lower on Wednesday. Foreign institutional investors offloaded equities worth ₹3,642 crore on Tuesday, reflecting ongoing investor caution. The decline in the rupee is also being closely watched by importers and exporters, as a weaker currency can increase import costs thereby affecting trade balances.

Outlook and Trends

The currency is expected to remain under pressure in the near term, with the dollar-rupee pair potentially drifting towards the 90.70–91 range if current trends persist, as per reports. The upcoming RBI monetary policy decision may bring some clarity on the central bank’s stance towards currency management, but for now, market dynamics continue to drive the rupee’s movement.