The Indian rupee hit yet another record low against the US dollar just a day before the Reserve Bank of India announces its latest monetary policy decision. The currency fell to 90.42 per dollar, surpassing Wednesday’s previous low of 90.29, as foreign investors continued to exit Indian equities amid uncertainty over the pending India-US trade agreement. With a decline of more than 5% so far this year, the rupee remains one of Asia’s weakest currencies, pressured further by steep US tariffs of up to 50% that have dented exports to India’s largest market.
On Wednesday, the rupee slipped below the 90-mark for the first time, closing at 90.15. Chief Economic Adviser V. Anantha Nageswaran said the currency’s decline has not significantly affected inflation or exports, though he acknowledged that import-heavy sectors — including petroleum, electronics, and gems and jewellery — face higher input costs.
The dollar index inched up to 98.99, while Brent crude rose to $62.98 a barrel. Traders say sentiment remains cautious until trade tensions ease, with some expecting the rupee to approach 91 soon. Analysts also believe the RBI is unlikely to cut rates in this environment. Markets, meanwhile, await Governor Sanjay Malhotra’s remarks on December 5, as the MPC meets against a backdrop of robust GDP growth, easing inflation, and global uncertainty.
