Rupee Slides Below 90/USD, Sparks Fresh Economic Concerns

The Indian rupee slipped to a new all-time low on Wednesday, breaching the psychologically significant 90-per-dollar mark for the first time. After weeks of sustained pressure, the currency touched 90.29 in the spot market, reflecting persistent volatility driven largely by global and trade-related factors.

Currency analysts attribute the latest slide to ongoing uncertainty surrounding the India-US trade discussions as well as rising import demand, both of which have amplified pressure on the domestic currency. According to Anindya Banerjee, Head of Commodity and Currency at Kotak Securities, the recent movement does not indicate disorderly market conditions. He noted that the Reserve Bank of India has been intervening selectively—aimed at curbing excess volatility rather than defending any particular exchange-rate level.

With the rupee now decisively below 90, Banerjee believes this zone will act as an important pivot for traders. A sustained move above the 90 threshold, he said, could pave the way toward the 90.50–91 range, while immediate support is expected near 89.80. He also stressed that the current trend mirrors global dollar strength and broader trade uncertainties instead of signaling any significant deterioration in India’s economic fundamentals.

The rupee’s decline carries mixed implications for the Indian economy. While a weaker currency can benefit exporters by boosting the competitiveness of Indian products in global markets, it poses challenges for consumers and businesses dependent on imports. Prices of imported electronics, gadgets, and packaged foods are likely to rise, squeezing household budgets. Capital goods, crucial for industrial use, may also become more expensive. Given India’s heavy reliance on imported crude oil and natural gas, the depreciation could elevate energy costs, potentially feeding into overall inflation in the months ahead.