New Delhi: The Indian rupee plunged to an all-time low of 93.31 against the U.S. dollar on Thursday, driven by strong external pressures including elevated U.S. interest rates and continued global capital outflows.
The sharp depreciation comes amid a strengthening dollar, persistent trade-related uncertainties, and significant foreign institutional investor (FII) outflows. Analysts also point to the impact of high U.S. tariffs adding pressure on emerging market currencies, including the rupee.
The weakening of the rupee is expected to have wide-ranging economic implications. A softer currency increases the cost of imports—particularly crude oil, electronics, and other essential goods—which could further fuel inflationary pressures in the domestic market.
At the same time, the depreciation may offer some benefits, including boosting exports and increasing the value of remittances sent by Non-Resident Indians (NRIs).
Market participants are closely watching for possible intervention by the Reserve Bank of India (RBI) to stabilise the currency, although the government has previously indicated that short-term fluctuations do not warrant undue concern.
Despite the current downward trend, some analysts remain cautiously optimistic, suggesting that the rupee could see gradual recovery later in the year, depending on global economic conditions and capital flows.
