Rupee hits fresh record low at 90.55 against US dollar

The Indian rupee weakened further on Friday, touching a new record low of 90.55 against the US dollar in early trade. The currency slipped 0.3 per cent, breaching its previous all-time low of 90.47 hit on December 11.

The rupee, already the worst-performing Asian currency this year, had closed at 90.25 on Thursday.

Technical levels signal more downside

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According to Dilip Parmar, Research Analyst at HDFC Securities, the near-term outlook remains weak.

He said the immediate resistance for the spot USDINR pair stands at 90.70, while the crucial support has shifted sharply higher to 90.10 from 89.70 earlier.

“This upward shift in the support floor confirms that sentiment remains heavily skewed toward further rupee weakening in the near term,” Parmar noted.

Why the rupee is falling

Zee Business Managing Editor Anil Singhvi earlier explained the reasons behind the sudden pressure on the currency. He said the situation, while concerning, is not as alarming as it appears.

Key factors weighing on the rupee include:

A new record low for the fourth straight session

A similar streak last seen between 8–14 January 2025, when the rupee hit record lows for five consecutive days

High global and domestic tariffs reducing exports and cutting dollar inflows

Steady imports providing no offsetting support

Expectations of an upcoming RBI rate cut

Continuous FII selling, which is raising dollar demand

Should India worry?

Singhvi said that despite the fall, India’s macro environment remains stable and reduces the risk from short-term volatility.

He highlighted several buffers:

- A weak rupee aids exporters facing tariff-driven challenges

- This may explain why the RBI isn’t intervening aggressively

- Any positive development on trade talks could quickly support the currency

- India’s economy remains robust

- Forex reserves are near record levels at around USD 700 billion

- The current account deficit is below 2.5 per cent, signalling strong external stability

- Soft crude oil prices continue to support rupee stability