India’s rupee fell to a record low of over 90 per dollar on Wednesday, continuing recent declines. Traders partly blame delays in a trade deal with the United States. The fall adds pressure on Asia’s fifth-largest economy amid current account deficits and foreign outflows.
The rupee has been one of Asia’s worst-performing currencies this year. Early trade talks with the U.S. had lifted it to a six-month high of 83.75 in May. However, weak corporate earnings and stalled negotiations have led foreign investors to sell more than $16 billion in Indian shares.
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On Wednesday, the rupee dropped as much as 0.35 percent to 90.19, according to Bloomberg. Analysts say the main cause is a supply-demand imbalance. Foreign fund outflows and trade uncertainty have further weakened the currency.
The Reserve Bank of India (RBI) has intervened sporadically this year to stabilize the rupee. Experts note that RBI is now taking a more hands-off approach to allow market-driven movement. This strategy prioritizes economic growth over defending symbolic currency levels.
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Analysts expect the rupee to trade between 88 and 92 in the near term. They view the current fall as part of a transition toward a market-aligned exchange rate. Volatility may continue, but fundamentals will guide the currency’s path.