The Indian rupee slipped to a fresh record low against the US dollar on Friday, November 21, as fading expectations of US Federal Reserve rate cuts and renewed global risk aversion weighed on emerging-market currencies.
The rupee even touched 89.48, breaching its previous all-time low of 88.80 recorded in late September and again earlier this month. It was down 0.8 percent on the day.
“Global risk-off sentiment has spilled into currency markets after a sharp overnight sell-off in cryptocurrencies and AI-linked technology stocks. The sudden unwinding of risk trades is weighing on emerging-market currencies, including the Indian rupee,” an analyst said.
He added that uncertainty around the proposed India–US trade deal has compounded the pressure. Markets had hoped the agreement would provide clarity on the bilateral economic outlook. “With no firm timelines emerging, sentiment remains fragile,” he noted.
Pressure on the currency has been persistent since steep US tariffs on Indian exports took effect in late August. The rupee is now one of the weakest major Asian performers this year, with foreign investors pulling $16.5 billion from Indian equities to date.
Traders said the Reserve Bank of India, which had been actively defending the 88.80 level in recent sessions, appeared to have scaled back its defence on Friday and instead likely intervened nearer 89.50.
“No one expected the RBI to let 88.80 go, and there were hardly any offers on the dollar side, leading to gap-up moves in USD/INR,” a trader at a state-run bank said. Another trader at a private-sector bank added that volumes spiked sharply once the level broke.
“Eighty-nine point fifty is the new resistance for now. The RBI seems to be relenting to a market that has been short INR for a while. But much will depend on the trade deal. A favourable outcome could bring USD/INR down materially,” said a currency expert.