New Delhi, Dec 1 (UNI) The Indian rupee sank to a fresh all-time low today, touching Rs 89.79 against US dollar during intraday trade, as strong dollar demand, foreign fund outflows and global uncertainty triggered a sharp fall in the currency.
This is the steepest drop in recent weeks and the first time the rupee has come so close to Rs 90 mark.
The partially convertible rupee opened weak at around Rs 89.45 and kept sliding through the day as importers rushed to buy the greenback, especially oil and commodity buyers.
With global crude oil prices rising again, India’s import bill has jumped, increasing the market’s need for dollars and pushing the rupee down further.
Currency dealers said the fall was also driven by thin dollar supply and heavy importer buying, which created a gap that the rupee could not withstand.
Some traders added that the market expected the Reserve Bank of India (RBI) to defend certain levels, but limited intervention triggered stop-loss orders, causing a sudden acceleration in the rupee’s decline.
Adding to the pressure, foreign institutional investors have been pulling out money from Indian stocks and bonds, leading to continuous foreign fund outflows.
The uncertainty around major trade agreements — especially India-US talks — has also hurt investor sentiment and reduced inflows into the local currency.
Global factors have played a big role too.
The US dollar has strengthened sharply due to higher global yields and safe-haven demand.
Many Asian currencies have weakened in the past few days, and the rupee is among the worst performers this week.
A weaker rupee makes imports costlier, which means India may have to pay more for crude oil, cooking gas, electronics, chemicals and machinery. This raises the risk of higher inflation in the coming weeks. Companies with loans in foreign currency will also face higher repayment costs.
