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Rupee Sinks to Record Low Near 90.5 per Dollar as RBI Moves to Stall Slide

Strong corporate dollar demand drove the fall despite the Fed’s cut.

Overview

  • The rupee touched an intraday record near 90.48–90.49 per dollar and ended at a fresh low, with reports placing the close around 90.33–90.37.
  • Dealers cited heavy dollar buying by importers and continued foreign portfolio outflows, with exchanges reporting Rs 1,651 crore in equity sales on Wednesday.
  • Traders said the Reserve Bank of India likely sold dollars near 90.42–90.45 to curb losses, and a $5 billion buy/sell swap is scheduled next week to support liquidity.
  • USIndia negotiations continued in New Delhi as USTR Jamieson Greer said Washington had received its “best” offers from India, while India’s chief economic adviser indicated a pact may come by March 2026.
  • The Fed’s 25-basis-point cut briefly softened the dollar yet failed to lift the rupee, with markets now watching Friday’s India inflation reading and further RBI actions.