Rupee Hits All-Time Low to Record 90.56 as Import Dollar Demand and Trade Uncertainty Rise

Rupee Hits 90.56 as Importers Rush for Costlier Dollar Payments and Nervous Trading Deepens Market Stress

The Indian Rupee fell to a fresh record low of 90.56 against the US dollar on Friday. The fall came as markets grew nervous over slow India-US trade talks and rising dollar demand. The drop pushed the currency below its earlier lows from this week and added pressure on the overall exchange rate.

Traders said the long delay in the India-US trade deal hurt market confidence. Talks between the countries have moved very slowly, and no strong update has come from officials. This lack of clarity made global investors reduce their exposure to Indian markets. These foreign fund outflows created more pressure on the Rupee.

Rising Dollar Demand Pressures the Rupee

Importers also bought more dollars to manage payments for oil, gold, and other raw materials. Higher global prices forced importers to increase their dollar purchases, which tightened supply in the local market. This strong demand for dollars from importers pushed the exchange rate even lower.

Dealers noticed nervous trading across the currency market. Market activity stayed cautious from the opening of the session. The Rupee opened near the 90.40 level and then slipped to 90.56 within hours. Many traders said they expect the currency to stay weak until strong signals come from the trade negotiation teams of both countries.

Global Factors Add More Pressure

Market experts pointed to more reasons behind the current fall. Strong US yields attracted global investors toward the dollar. Rising demand for safe-haven assets also supported the dollar. These trends made the Rupee struggle through the day. A wider current account deficit added to the worries. Higher import bills and weak flows created more stress on India’s external position.

The RBI intervention stayed limited. The central bank stepped in at times to control sharp swings. But the RBI did not take aggressive steps as it prefers to save reserves for stronger market shocks. Analysts said the RBI may act more firmly if sharp volatility increases. But for now, the currency market must adjust to global pressures.

Economic Impact and Outlook Ahead

The Rupee has fallen around 5.7 percent this year. This makes it one of the weakest Asian currencies for 2025. The fall is the steepest since 2022, when the currency slipped over 11 percent. Many traders fear more weakness ahead if the India-US trade talks continue without strong progress.

The fall of the Indian Rupee brings a wider economic impact. Import costs increase for oil, metals, and machinery. These higher costs may raise inflation in the coming months. Many companies with dollar loans face higher repayment pressure. Exporters gain some advantage from a weak currency, but that benefit remains limited in the current environment.

Experts said three key factors will guide the Rupee in the coming days. First, the direction of the India-US trade talks. Second, the pace of foreign fund outflows. Third, the level of RBI intervention. A positive change in any of these aspects can lead to market stability. On the other hand, if the factors do not change, the currency rate may continue to struggle; in short, the exchange rate may remain under heavy stress.

For now, markets look toward policy updates, trade talks, and the global interest rate cycle. The Rupee remains under pressure as the currency adjusts to a mix of global and domestic challenges.