Overview
- The currency slid to an intraday low around 90.46–90.48 after opening at 89.95 and weakening to 90.11 early in the session.
- Traders cited heavy dollar buying by corporates and banks, risk-averse sentiment, and sustained foreign portfolio outflows as the immediate drivers.
- The U.S. Federal Reserve’s rate cut briefly softened the dollar but offered little relief to the rupee, which is down about 5% this year and among the weakest major currencies.
- RBI was reported by traders to have stepped in during the day, and a $5 billion dollar‑rupee buy/sell swap is scheduled next week to add liquidity and temper volatility.
- U.S.–India trade developments kept volatility elevated, with USTR Jamieson Greer noting the U.S. received its best offers from India and traders saying reports of a potential deal timeline coincided with the slide.