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Rupee slips to a fresh record low against US dollar
At the interbank foreign exchange, the Indian rupee opened at 89.70 against the US dollar and then slid further to a record low of 89.85, down 32 paise from the previous close.
What happened on the trading floor
- The currency started the session at 89.70 and moved quickly to a new intra-day low of 89.85.
- The 32 paise drop marks a noticeable weakening in a single session, signaling pressure on the rupee versus the dollar.
- Traders noted the move during interbank deals, where large wholesale transactions set the tone for the day.
Potential implications
- Importers may face higher costs if the rupee remains weak, especially for dollar-priced goods like crude oil and raw materials.
- Exporters could see a modest competitive edge if the currency stays lower, though gains depend on contract structures and hedging.
- Inflation and corporate margins could be affected over time if exchange-rate weakness feeds into domestic prices or input costs.
What traders and businesses will watch next
- Movements in the US dollar and global risk sentiment.
- Domestic macro data and any comments or action from monetary authorities.
- Foreign portfolio flows and large corporate dollar demand in the interbank market.
Short-term volatility is likely while participants assess global cues and domestic flows. Market watchers will be looking for signs of stabilization or further pressure in the coming sessions.