The rupee tumbled to another record low on Thursday, slipping further past the 90-per-dollar mark as the stalemate in trade talks with Washington and persistent dollar demand from corporates piled fresh pressure on the market. Dealers said the Reserve Bank of India appeared to step in to slow the slide, but the intervention was measured and aimed more at tempering volatility than defending any particular level.
The rupee weakened to 90.46 against the dollar, breaching its previous low of 90.42 hit on December 4. The rupee is now the worst-performing major currency in Asia this year, down more than 5 percent, dragged by steep US tariffs of up to 50 percent on Indian exports and a sharp pullback in foreign portfolio flows. Overseas investors have sold nearly $18 billion worth of Indian equities so far in 2025, placing India among the most affected emerging markets.
Traders said the RBI was likely in the market on Thursday to limit deeper losses. One dealer described the intervention as “mild”, noting that the central bank’s recent restraint in using its reserves has contributed to higher rupee volatility. Analysts at Goldman Sachs pointed to a record October goods trade deficit and subdued capital inflows as signs of further stress in India’s balance of payments through the fourth quarter.
The currency’s trajectory now hinges heavily on whether New Delhi and Washington can clinch a long-delayed trade agreement. India’s Chief Economic Adviser expects a deal by March, while Commerce Secretary Rajesh Agrawal held discussions with US Deputy Trade Representative Rick Switzer earlier this week.
Across the region, Asian currencies traded mixed, while the dollar index held steady around 98.6. With stop-loss orders triggered at the new low, the rupee may remain under downward pressure in the near term, said Dilip Parmar of HDFC Securities, who flagged 90.70 as the next level to watch.
