The Indian rupee continued its downward slide on Friday, closing at a record low of ₹90.41 against the US dollar, down 9 paise from the previous session. The fall marks another milestone in the rupee’s ongoing depreciation this year.
Traders said the slide was largely driven by high demand for dollars from importers settling overseas payments. At the same time, foreign investors withdrew funds from Indian equities and debt markets, adding to the pressure on the currency.
Global factors also contributed. A strong US dollar and ongoing market uncertainties abroad made investors cautious, leaving the rupee vulnerable. Analysts note that while the Reserve Bank of India (RBI) can step in to stabilize the currency, its ability to halt the slide is limited when import demand and capital outflows remain high.
The depreciation reflects India’s trade imbalance, where imports consistently exceed exports, driving higher demand for foreign currency. Businesses and consumers are likely to feel the effects, as imported goods, overseas travel, and education costs increase.
Experts believe temporary relief could come if global dollar strength eases or if foreign capital inflows improve. However, the rupee is expected to remain under pressure in the near term until broader economic and market conditions stabilize.
The record low highlights the delicate balance between domestic economic needs and global financial forces. With trade, investment, and currency markets closely linked, India faces ongoing challenges in managing the rupee amid fluctuating global conditions and persistent import pressures.
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