Daijiworld Media Network – Mumbai

Mumbai, Dec 12: The Indian rupee slipped to a fresh record low of 90.52 against the US dollar in early trade on Friday, extending its steep slide this year as uncertainty looms over the India–US trade negotiations.

The currency had already closed at 90.46 on Thursday, breaking its earlier all-time low of 90.42 recorded on December 4, signalling persistent pressure on the domestic unit.

Market experts have attributed the rupee’s continued weakness to a combination of factors — a ballooning trade deficit, strong corporate dollar demand, and the recent decision by the US to impose 50% tariffs on select Indian products. The developments have collectively weighed on investor sentiment, accelerating the rupee’s slide.

So far this year, the rupee has depreciated over 5%, making it the third-worst performing currency among 31 major global currencies — weaker only than the Turkish lira and Argentina’s peso. This decline is significant, especially as the US dollar index has eased by more than 7% during the same period.

Experts note that breaching the 90-mark carries symbolic weight, as the rupee has now lost half of its value since 2011. This places additional pressure on RBI Governor Sajay Malhotra and the central bank’s monetary policy team tasked with balancing currency flexibility and market stability.

The Reserve Bank of India remains a key player in stabilising the rupee’s movement, particularly in overseas markets. It frequently intervenes in the Non-Deliverable Forwards (NDF) market, where contracts are settled in dollars. Such interventions are routed via the Bank for International Settlements (BIS) through major banking partners operating across key hubs including Singapore, Dubai, and London.

With global headwinds persisting and domestic pressures mounting, all eyes are now on the RBI’s next set of measures as the rupee continues to navigate one of its toughest phases in recent years.