The Indian rupee slipped to a historic low on Tuesday, crossing the 91 mark against the US dollar for the first time. The sharp fall reflects sustained pressure from foreign fund outflows and rising global trade uncertainty.
During early trade, the rupee touched 91.075 against the dollar, extending its losing streak. It had already weakened past its previous record of 90.83 earlier in the session. Over the last 10 trading days, the rupee has slid from the 90 level to 91, losing nearly one percent in just five sessions.
Market experts attribute the decline to continuous selling by foreign institutional investors. Heavy demand for dollars and weak risk sentiment have further strained the domestic currency. Traders say the rupee remains trapped in a negative cycle driven by capital outflows.
The pressure intensified after the rupee closed at 90.78 in the previous session, marking another record low. Last Friday, the currency had already dropped 17 paise to end at 90.49, signalling sustained weakness.
Typically, the Reserve Bank of India steps in by selling dollars to smooth sharp volatility. However, persistent global headwinds continue to challenge stability. Analysts warn that unless capital flows improve, the rupee may remain under pressure in the near term, raising concerns for import costs and inflation.
