Rupee continued its downward rally on Monday, falling to an all-time low of 90.58 against the US dollar. This dip marks second week of record lows after the currency fell to 90.55 against USD earlier, on Friday.The currency is struggling with familiar headwinds, weighed down by delays in a US trade deal, persistently weak capital flows, and a widening trade deficit. Experts have pointed to a mix of factors driving its decline, including strong corporate demand for dollars and steep US tariffs of 50% on Indian exports. This year alone, the currency has slipped over 5% against the US dollar, making it the third-worst performer among 31 major global currencies, behind only the Turkish lira and Argentina’s peso. This decline comes even as the dollar index has eased by more than 7%. Crossing the 90 mark is particularly significant, as it represents half of the rupee’s value in 2011. Analysts say that this milestone adds pressure on RBI governor Sajay Malhotra, who must carefully balance currency flexibility with overall market stability.In recent months, the Reserve Bank of India (RBI) has often intervened to slow down rupee’s slide. However, its support has appeared less forceful since the currency weakened past the 88.80 level and surpassing the 90 per dollar mark. The RBI remains a key player in the rupee’s international trading, including through non-deliverable forwards (NDFs) settled in dollars. Its interventions are executed through the Bank for International Settlements, in coordination with select major banks across trading hubs such as Singapore, Dubai, and London.
