The Indian currency fell 77 paise to a fresh low of 91.75 against the US dollar on Wednesday
The rupee fell up to 91.06 per dollar during the day, near the record low of 91.08 per dollar
Renewed threats of tariffs by US President Donald Trump -- specifically targeting European nations over a dispute regarding Greenland -- have triggered a global "risk-off" sentiment
Strong headline numbers, low inflation and a modest current account deficit have fostered the belief that little needs fixing
Heavy importer demand and maturing NDF positions pushed the rupee to its steepest one-day fall in two months, even as RBI dollar sales capped deeper losses
The rupee's depreciation is often seen as an opportunity - but this narrative overlooks its impact on borrowers of foreign-currency debt
The rupee settled at 90.03 per dollar, against the previous close of 89.89 per dollar
The local currency settled at 89.88 per dollar, against the previous close of 90.17 per dollar, after touching an intraday high of 89.83 per dollar
The rupee snapped a four-day losing streak in the last session, with bankers flagging possible support from the Reserve Bank of India
Amid deepening strategic ties and discussions around Free Trade Agreement (FTA) between India and Israel gaining momentum, the State Bank of India (SBI), the only Indian bank with a presence in Israel, is looking to facilitate bilateral trade in Indian rupees. "In view of India's significant trade flows from/to its partner countries and growing interest among the global trading community to trade in the Indian rupee, it has been envisaged by our banking regulators, i.e. Reserve Bank of India, to permit Indian banks to facilitate settlement of exports and imports of their respective corporate clientele in INR. Israel has been identified as one of the partner countries under this mechanism," CEO of SBI Israel, V Manivannan, told PTI. Israeli entities undertaking exports/imports through this mechanism shall receive and make payments in INR, which shall be credited into the Special Rupee Vostro Account (SRVA), against invoices for the supply/purchase of goods or services from the Israeli
The rupee breached the 90-per-dollar level amid sustained corporate dollar demand and FPI outflows, even as banking system liquidity turned surplus after two weeks
A weak rupee has wiped out nearly half of global investors' gains, leaving foreign funds waiting for a currency rebound to revive returns
Heavy state government borrowing is expected to keep bond yields elevated in 2026, while the rupee, after its worst Asian performance in 2025, is seen trading in a narrow range
RBI data shows its outstanding net short dollar position in the rupee forward market rose to $66.04 billion by end-November, up from $63.6 billion at end-October
The currency repeatedly fell to record lows during the year, slipping past the 91 level at one point, highlighting the sustained depreciation pressure
The selling comes as the rupee tested a series of record lows against the dollar this month, eroding returns for foreigners
Beyond the immediate cues, stalled India-US trade talks and foreign portfolio outflows continue to weigh on the rupee despite RBI intervention
The Indian rupee slipped past ₹90 per dollar in December 2025, down 4.9% for the year, underperforming peers amid volatile capital flows and uneven forex support
The key uncertainty remains the currency, but if that stabilises and growth improves, India can deliver respectable returns, says Christopher Wood, global head of equity strategy at Jefferies.
The rupee slipped to 89.72 per dollar on Monday on strong dollar buying in the NDF market, before trimming losses to close at 89.65 as dealers flagged a shift in RBI's approach