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Rupee slides to fresh record low, settles at 90.93 against the dollar
On December 16, the Indian rupee weakened sharply against the US dollar, slipping below the 91-per-dollar mark during intraday trade. The currency hit an intraday low of 91.14 before recovering slightly to close at an all-time low of 90.93.
What happened on the trading day
- The rupee breached the 91 level intraday, touching 91.14.
- It ultimately settled at a record closing low of 90.93 against the dollar.
- Movements in the rupee were part of broader currency and capital market trends that traders monitor closely.
Why this matters
A weaker rupee has immediate economic and business implications. Key effects include:
- Import costs: A cheaper rupee raises the cost of importing goods and fuels, which can add to inflationary pressures.
- Corporate profits: Companies with large foreign-currency expenses may see margins squeezed unless they hedge.
- Exports: Exporters may gain a price advantage, though benefits depend on global demand.
- Consumers and travelers: Overseas travel, education and foreign remittances become more expensive.
What to watch next
Markets will be watching several indicators and policy responses closely:
- Foreign portfolio flows and global interest rate moves.
- Crude oil prices, which affect import bills and the trade balance.
- Central bank communications and any market intervention in forex markets.
- Domestic macro data — inflation, current account and capital inflows — that influence longer-term direction.
For businesses and consumers, the sharp move underlines the importance of currency risk management and staying alert to policy and market developments in the coming days.