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Rupee falls to record intra-day low against the dollar
The Indian rupee opened at 88.67 on the interbank foreign exchange market and quickly weakened, sliding 82 paise to touch an intra-day low of 89.50 against the US dollar. It later recovered slightly and was trading at 89.40.
What happened during trading
- The session began with the rupee near 88.67. Selling pressure pushed it sharply lower in early trade.
- At its weakest point, the currency hit 89.50 — the lowest intra-day level seen so far — before pulling back modestly.
- By mid-session the rate stood around 89.40 against the American currency.
Why this matters
A weaker rupee can make imports more expensive, particularly crude oil and other dollar-denominated goods, which may feed into inflationary pressures. It can also affect corporate earnings for companies with large foreign currency exposure and influence foreign investor flows into domestic assets.
Factors to watch
- Dollar strength: Global moves in the US dollar often drive pressure on emerging market currencies.
- Commodity prices: Higher oil or commodity costs can widen the trade deficit and weigh on the rupee.
- Capital flows: Foreign portfolio investment and central bank activity can quickly change market dynamics.
- Domestic policy steps: Any intervention or communication from authorities may stabilise or further move the currency.
The intra-day fall underscores the rupee’s sensitivity to both global and domestic developments. Traders and businesses will be watching near-term cues to gauge whether the currency will stabilise or face further pressure.