MUMBAI
The Indian rupee slipped to yet another record low on Friday as weak global cues, rising demand for the US dollar, and continued foreign investor outflows weighed heavily on market sentiment. The currency opened at 90.43 against the dollar and soon dropped to 90.56, marking a 24-paise fall from Thursday’s close.
Traders said the pressure on the rupee intensified due to uncertainty over the India–US trade deal and persistent selling by foreign institutional investors. A day earlier, the rupee had already tumbled 38 paise to end at a then-record low of 90.32, signalling a broader weakening trend.
Forex dealers noted that importers have been aggressively purchasing dollars as global prices of precious metals continue to rise. This strong demand for the US currency is adding further stress to the rupee’s position.
Despite the slide, experts offered a more hopeful outlook. They said the rupee is likely to stay below 90 per dollar for the remainder of 2025 and may strengthen through 2026, potentially reaching around 86 per dollar by the end of next year. They pointed out that a weaker rupee could benefit export-driven industries like IT, pharmaceuticals and textiles, especially as some exports face pressure from high US tariffs. But they also warned that a falling rupee can increase the risk of imported inflation.
Meanwhile, global indicators showed mixed movement. The dollar index inched up to 98.37, while Brent crude traded higher at USD 61.69 per barrel. Despite currency weakness, Indian stock markets stayed positive: the Sensex climbed 170.40 points to 84,988.53, and the Nifty rose 98.40 points to 25,996.95. Foreign investors continued to withdraw funds, selling equities worth Rs 2,020.94 crore on Thursday.
