{"id":18931,"date":"2025-12-11T15:15:13","date_gmt":"2025-12-11T09:45:13","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=18931"},"modified":"2025-12-11T15:15:13","modified_gmt":"2025-12-11T09:45:13","slug":"rupee-slides-to-fresh-record-low-at-90-47-against-the-dollar","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/rupee-slides-to-fresh-record-low-at-90-47-against-the-dollar\/","title":{"rendered":"Rupee Slides to Fresh Record Low at 90.47 Against the Dollar"},"content":{"rendered":"

Rupee Slides to Record Low of 90.47 Against US Dollar as Global and Domestic Pressures Intensify<\/p>\n

The Indian rupee hit a fresh record low of 90.47 against the US Dollar on December 11, marking one of its sharpest drops in recent months and setting the stage for what may become the currency\u2019s worst yearly performance since 2022. The decline comes amid a challenging global backdrop, weakening portfolio flows, and persistent uncertainty over trade negotiations between India and the United States.<\/p>\n

As of 1:40 pm, the rupee had weakened 0.5% to 90.47, breaching its previous all-time low of 90.42 touched on December 4. Despite a softening dollar index following the US Federal Reserve\u2019s latest policy decision, the rupee failed to find relief, weighed down by structural pressures on India\u2019s external sector.<\/p>\n

A Record Fall Highlights Mounting Pressures on India\u2019s External Sector<\/h2>\n

The rupee\u2019s trajectory in 2024 has been shaped by a combination of domestic constraints and global headwinds. Analysts note that the currency has struggled to counter the effects of weak foreign portfolio inflows, elevated US trade tariffs, and a deteriorating Balance of Payments (BoP) position.<\/p>\n

According to market data, the rupee is on track for its steepest annual fall since 2022, highlighting the persistent strain on India\u2019s currency stability. Traders said that significant dollar demand from foreign and private-sector lenders, likely linked to merchant payments, contributed to the pressure on Wednesday. This aligns with earlier commentary from Reuters, which reported continued buying support for the US Dollar despite a mild recovery in Asian currencies.<\/p>\n

Also Read : Kaynes Tech advances 6% on upbeat analyst views and strong growth narrative<\/a><\/p>\n

Global Markets Add Fuel as Fed Uncertainty and Higher Yields Drive Volatility<\/h2>\n

The weakness in the rupee comes at a time when global markets are navigating another shift in US monetary expectations. With a new Federal Reserve Chair set to take over in May 2026, investors are grappling with heightened uncertainty around the rate path over the next two years.<\/p>\n

\u201cThe higher interest rate environment and shifting policy expectations have tightened financial conditions, weighed on asset valuations, and increased volatility across rate-sensitive sectors,\u201d said Nachiketa Sawrikar of Artha Global Multiplier Fund.<\/p>\n

He added that delays in finalizing the much-anticipated India\u2013US trade deal have further clouded the outlook, hurting sentiment and pressuring the rupee-dollar exchange rate. Sawrikar also warned that the currency\u2019s slide may negatively impact FII inflows, thereby affecting equity valuations and debt markets in the months ahead.<\/p>\n

Trade Deficit and Slowing Inflows Deepen Concerns Over Balance of Payments<\/h2>\n

India\u2019s widening trade deficit remains another factor pulling the rupee downward. The record October goods trade deficit, coupled with muted capital inflows, has led analysts to forecast a deeper BoP deficit in the final quarter of FY25.<\/p>\n

\u201cA record October goods trade deficit and muted capital inflows \u2014 amid uncertainty around the India-US trade deal \u2014 point to a further deterioration in the net Balance of Payments position in Q4,\u201d Goldman Sachs noted in a recent report.<\/p>\n

Goldman also highlighted that the Reserve Bank of India (RBI) appears to have reduced its FX intervention over the past one to two weeks. While the RBI has historically stepped in to smooth volatility during sharp rupee moves, the central bank’s recent restraint has allowed the spot rate to adjust more freely, increasing intraday fluctuations.<\/p>\n

Rupee Outlook: Analysts Warn More Downside Possible as Volatility Rises<\/h2>\n

The combination of external pressures, reduced intervention, and growing market uncertainty has prompted analysts to caution that the rupee may remain under pressure in the short term.<\/p>\n

\u201cMany stop-losses got triggered at the rupee\u2019s record low, and the currency is likely to stay in a downtrend in the near term,\u201d said Dilip Parmar, Foreign Exchange Research Analyst at HDFC Securities. Parmar added that the next key level to watch is 90.70, a breach of which could lead to further weakness.<\/p>\n

Market participants also note that the US Dollar may continue to draw support from elevated Treasury yields, particularly if US inflation remains sticky or if the Fed signals a longer-than-expected hold on rate cuts.<\/p>\n

What This Means for Investors and Markets<\/h2>\n

With the rupee hitting a record low, investors across equity, currency, and debt markets are recalibrating expectations. A weaker rupee typically:<\/p>\n