• Source:JND

The rupee on Tuesday crashed to its lowest-ever level of 91, a new all-time low against the US dollar. The Indian currency continued to weaken to a record low for the fourth straight session due to continued foreign portfolio outflows. The rupee lost 36 paise to breach the 91-mark for the first time in intra-day, weighed down by sustained FII outflows and a lack of clarity on the India-US trade deal.

The rupee fell from 90 a dollar to 91 in the last 10 trading sessions. The local unit has slipped 1 per cent against the greenback in the past five sessions alone.

INR May Fall To 92

The forex traders said the rupee might even cross the 92 per dollar-mark this month. At 11.45 am, the local unit was trading at 91.14 against the US dollar, down 36 paise from its previous close. At the interbank foreign exchange, the rupee opened at 90.87 against the greenback and kept losing ground as the session progressed.

Why Rupee Continue To Fall

Highlighting the reasons responsible for the continued fall, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said with the India-US trade deal not happening soon because (US President) Donald Trump does not appear keen for an agreement without agriculture and India strictly saying no to it, the rupee crossed 91 and may even touch 92 this month.

The INR fell to 90.8275, eclipsing its previous record low of 90.7875 hit a day earlier. The rupee has fallen 6% against the U.S. dollar so far in 2025, making it one of the worst-performing emerging market currencies, as steep US tariffs on Indian exports have hurt trade and foreign portfolio flows.

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Losing Trend Due To Outflows  

Forex traders said prevailing risk-averse market sentiment, compounded by strong US dollar demand from importers, further dented investor sentiment. At the interbank foreign exchange, the rupee opened at 90.53 against the US dollar, gained slightly to 90.51 level and then lost ground to hit a record intra-day low of 90.80, registering a 31-paise decline from its previous close. At the end of trade on Monday, the rupee was quoted at a record low of 90.78, down 29 paise over its previous close.

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On Friday, the rupee had slipped 17 paise to close at an all-time low of 90.49 against the American currency. "The Indian rupee plunged to a record low, positioning it as the worst performer among the Asian currencies. Despite the better-than-expected trade balance number, the rupee was unable to find support," said Dilip Parmar, Research Analyst, HDFC Securities.

Parmar further noted, "This lack of resilience is primarily attributed to a significant demand-supply imbalance, driven by high dollar demand from importers and persistent capital outflows, which remain the biggest concerns for the currency." "In the near term, the technical bias for the spot USD-INR pair remains bullish, with key resistance at 90.95 and support at 90.50," Parmar added.

(With agencies inputs)


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