The Indian rupee has slipped to a historic low against the US dollar, marking its sharpest weekly decline in nearly six months. Persistent foreign fund outflows and aggressive hedging by importers have signaled weakening confidence in the currency, pushing it close to ₹92 per dollar.
During intraday trade, the rupee touched a low of ₹91.9650, before settling marginally higher at ₹91.96 against the greenback. Market participants described the fall as broad based and difficult to arrest despite regular intervention by the Reserve Bank of India (RBI).
The downturn reflects a notable slowdown in both foreign direct investment (FDI) and foreign portfolio investment (FPI) a reversal of trends that had largely supported the rupee since the early 1990s. While the RBI has been selling dollars in the spot market to contain volatility and defend the currency, the pressure has proved persistent.
What stands out in the current phase is that the rupee’s weakness is occurring even as several other Asian currencies have stabilised or posted gains in recent weeks, suggesting that domestic factors may be weighing more heavily than global ones.
Analysts say the slide cannot be attributed solely to external challenges such as trade tensions or higher tariffs imposed by the United States. Instead, the rupee appears to be facing structural and confidence related issues.
“This is largely a repeat of what we saw through most of 2025. The rupee remains under pressure regardless of broader global cues,” said Kunal Kurani, Vice President at Mecklai Financial Services, highlighting the currency’s continued vulnerability.
With capital inflows slowing and demand for dollars remaining firm, market watchers expect the rupee to stay volatile in the near term, keeping policymakers and traders on edge.
