The Indian rupee plummeted past 90 per US dollar to a record low on Wednesday, falling for the sixth straight day as traders anticipated that weak trade and portfolio movements will keep Asia’s worst performer under pressure without central bank intervention.
The rupee plummeted to a record low of 90.29 per US dollar, surpassing its previous low set a day before. It was recently quoted at 90.11, down 0.3% from its previous close. The slide highlights a disparity in India’s domestic and external macroeconomic positions. While GDP growth has been stronger than expected, harsh US tariffs and weak capital flows have weighed on the rupee.
The rupee has lost 5.3% year to year, marking the sharpest annual decline since 2022 and ranking it Asia’s worst-performing currency. I’m not worried about it,” V Anantha Nageswaran, the country’s senior economic adviser, said at an event on Wednesday. The decline has had little effect on inflation, he said, and he projects the currency to recover by 2026.
According to Joey Chew, head of Asia FX research at HSBC in Singapore, “the FX supply is relatively thin and inconsistent, while the FX demand from trade deficit and outflows keeps pushing USD/INR higher every day that we do not have a trade deal.
Also Read:
Homa Heybati: Breaking Barriers in the Renewable Energy and Finance Landscape
Nicolas Baerfuss: A Digital Space for Development and Well-being
About Author
