INR’s declining: INR’s declining trend is explained as the rupee continues to weaken against the US dollar, hitting a record low of 90.82
INR’s declining: In relation to the US dollar, the rupee plummeted to a new all-time low of 90.82 on Tuesday. Due to ongoing withdrawals from overseas portfolios, the Indian rupee weakened to a record low for the fourth day in a row.
The INR dropped to 90.8275, surpassing a day earlier’s record low of 90.7875. One of the worst-performing emerging market currencies so far in 2025 is the rupee, which has down 6% vs the US dollar due to trade and foreign portfolio movements being negatively impacted by high US tariffs on Indian goods.
A declining trend as a result of outflows
Weighed down by uncertainty about an India-US trade agreement and ongoing foreign money outflows, the rupee earlier on Monday fell to its lowest-ever level of 90.80 before ending at a new all-time low of 90.78 versus the US dollar, representing a loss of 29 paise over its previous finish.
Forex dealers said that the increased demand for US dollars from importers combined with the general risk-averse market attitude further damaged investor morale. With a 31-paise drop from its previous finish, the rupee began at 90.53 versus the US dollar, rose little to 90.51, and then lost momentum to reach a new intra-day low of 90.80 at the interbank foreign exchange. At the conclusion of trading on Monday, the rupee was quoted at a record low of 90.78, down 29 paise over its previous closing.
On Friday, the rupee had lost 17 paise to settle at an all-time low of 90.49 versus the American dollar. “The Indian rupee dropped to a record low, putting it as the poorest performer among the Asian currencies. Despite the better-than-expected trade balance result, the rupee was unable to find support,” said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar said, “This lack of resilience is primarily attributed to a significant demand-supply imbalance, driven by high dollar demand from importers and persistent capital outflows, which remain the biggest concerns for the currency.” “In the near term, the technical bias for the spot USD-INR pair remains bullish, with key resistance at 90.95 and support at 90.50,” Parmar said.