Overview
- India’s currency fell to an intraday low of 90.56 on Friday, after touching 90.48 on Thursday, and later closed at 90.41, marking successive all-time lows.
- Traders cited aggressive dollar buying by importers, corporates and banks — including demand linked to precious metals — as the key driver of the latest leg lower.
- Foreign investors have pulled roughly $18 billion from Indian equities this year, leaving the rupee down about 5–6% in 2025 and among Asia’s weakest performers.
- Market participants reported intermittent RBI intervention to slow the decline, with focus turning to a planned $5 billion dollar–rupee swap next week to ease liquidity.
- A US Federal Reserve quarter-point rate cut softened the dollar index, but rupee losses persisted as uncertainty around tariffs and the India–US trade deal weighed on sentiment.