Indian rupee hits record low of 89.92 against US dollar
What's the story
The Indian rupee has hit a record low of 89.92 against the US dollar today. The currency fell past its previous record low of 89.78, which it hit on Monday. Since November 3, the local currency has depreciated by over a rupee against the US dollar, according to available data. The fall comes just days ahead of an RBI policy meeting and despite a strong GDP growth of 8.2% for Q2.
Expert analysis
Experts weigh in on rupee's decline
Analyst Anindya Banerjee of Kotak Securities noted that no major intervention by the Reserve Bank of India (RBI) has been observed so far. He said a large Non-Deliverable Forward (NDF) expiry over the past few days needed to be rolled over or covered. "If USD-INR crosses 90, stop losses will trigger and we could see a sharp move toward 91," Banerjee added.
Market influence
Daily selling by FPIs impacts rupee's value
Jayesh Mehta of DSP Finance also blamed the rupee's fall on daily selling by Foreign Portfolio Investors (FPIs) without RBI support and NDF expiry covering. He suggested that the RBI must cut interest rates on Friday and announce Open Market Operations (OMOs) worth ₹2 lakh crore till March 2026. As per Reuters reports, the RBI has sold dollars to prevent further weakening of the Indian currency past 90.