Rupee falls by 40 paise to close at record low of 90.37 vs dollar

The rupee tumbled to a fresh all-time closing low on Thursday, ending the day at 90.37 per US dollar. The currency had closed at 89.9650 on Wednesday, which means it weakened by about 40 paise in a single session. With this drop, the rupee has now fallen more than 5 per cent so far this year, making it the weakest currency in Asia for 2025.

According to traders, the delay in the India–US trade agreement has made investors nervous, while risk-averse global markets and persistent foreign fund outflows are adding to the pressure.

Rupee's record intraday low

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The rupee opened at 89.95 in the interbank market but kept losing ground. It fell to a record intra-day low of 90.48, marking a 51-paise drop from the previous close.

According to Dilip Parmar of HDFC Securities, the USD–INR pair now faces resistance at 90.70, while strong support has moved up to 90.10 from 89.70—a sign that traders expect the rupee to weaken further in the near term.

Also Read: Rupee rebounds by 17 paise vs dollar, off 90 mark: Key things to know

India–US trade talks at sensitive stage

Adding to the pressure, uncertainty around the Bilateral Trade Agreement continues. US Trade Representative Jamieson Greer said in a Senate hearing that the US has received its “best ever” offers from India, but there is still resistance in New Delhi over some agricultural items, including row crops like corn, soybeans, wheat and cotton.

These comments come as both sides begin a new round of two-day talks aimed at completing the first phase of the trade deal.

Also Read: Dollar vs Rupee: INR falls as RBI announces rate cut by 25 bps to 5.25%

Global trends: Dollar eases, crude prices fall

Globally, the dollar index slipped 0.18 per cent to 98.61 after the US Federal Reserve cut interest rates and issued a softer-than-expected policy outlook. Oil prices also eased, with Brent crude trading 1.25 per cent lower at $61.43 per barrel. Though lower crude prices typically support the rupee, the impact was overshadowed by trade-deal uncertainty.

Indian stock markets saw strong gains despite the currency turbulence. The Sensex rose 426.86 points to close at 84,818.13, while the Nifty jumped 140.55 points to 25,898.55. Foreign institutional investors, however, remained net sellers, pulling out Rs 1,651.06 crore from Indian equities on Wednesday, as per exchange data.