Rupee hits record low as the Indian currency weakened to 91.98 per US dollar on Thursday, surpassing its previous all-time low of 91.9650 recorded last week. The decline came despite signs of strength in the domestic economy, as persistent foreign capital outflows and increased corporate demand for dollar hedging continued to weigh on sentiment.
Market participants said the Reserve Bank of India (RBI) likely intervened in the currency market by selling dollars before the local spot market opened, in an effort to curb excessive volatility. Three traders familiar with the matter indicated that the central bank stepped in as pressure on the rupee intensified.
Signals from the one-month non-deliverable forward (NDF) market had already pointed to the possibility of the rupee breaching the 92-per-dollar level, heightening concerns among importers and investors.
The rupee has fallen around 2% so far this year and is down nearly 5% since US President Donald Trump imposed steep tariffs on Indian exports to the United States, India’s largest overseas market. The trade measures have added to external pressures, accelerating capital outflows and undermining investor confidence in emerging market currencies, including the rupee.