New Delhi: The Indian rupee on Friday plunged to a new record low against the US dollar, reflecting sustained pressure from strong dollar demand and continued foreign fund outflows. At the time of filing this report, the rupee was trading 41 paise lower at 91.97 per dollar, marking its weakest level ever.
Earlier, the rupee had slipped to a previous record low of 91.74 before breaching that mark, underscoring the mounting stress in the currency market. The fall to around the 91.95 level highlights intense domestic demand for dollars and persistent selling by foreign investors in Indian markets. While some relief has emerged from global cues, market participants believe a durable recovery will require reduced geopolitical uncertainty and greater clarity on the proposed India–US trade agreement.
Forex traders said the primary pressure on the rupee stemmed from continuous dollar buying in the domestic market. Demand from corporates and importers quickly wiped out early gains, pushing the currency lower as the session progressed. As dollar demand intensified, the rupee weakened steadily during intraday trade, eventually slipping to around 91.93.
Market participants noted that developments related to the India–US trade deal could act as a key stabilising factor for the rupee in the coming days. Investors are closely tracking progress on the agreement, as it could help restore confidence and ease some of the pressure on the domestic currency. Traders cautioned that until geopolitical risks subside and there is greater visibility on the trade pact, the rupee may remain vulnerable to external shocks.
Amit Pabari, Managing Director of CR Forex Advisors, said that global risks are largely priced into the rupee at current levels. He added that if risk sentiment stabilises, the market could see a phase of consolidation and partial recovery. According to him, the 92.00 level remains a strong resistance, while continued support from the Reserve Bank of India could help the dollar-rupee pair retreat to the 90.50–90.70 range.
