Overview
- The currency touched a record 90.4 per dollar on Thursday before paring losses to near 90.1, extending this week’s break of the 90 barrier.
- Stocks slipped as the Nifty traded below 26,000 and overseas investors remained net sellers, with NSDL data showing roughly ₹1.48 lakh crore withdrawn in 2025.
- Dealers cited persistent dollar demand from importers, offshore positioning and uncertainty around an India–US trade agreement, alongside US tariff actions that have clouded export prospects.
- The Reserve Bank of India has been selling dollars and using forwards to curb sharp swings rather than defend a line in the sand, and markets await Friday’s MPC decision for guidance.
- Officials and some analysts downplayed macro damage—CEA V. Anantha Nageswaran said inflation and exports are unaffected—though others warned the rupee could test 90.5–92 if trade clarity and flows do not improve.