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Rupee At All-Time Low: A recovery in the US dollar ahead of the inflation data and foreign fund outflows further dent investors’ sentiments, say forex traders.
Rupee Vs Dollar Today.
The Indian rupee on Thursday declined 36 paise to close at an all-time low of 88.47 (provisional) against the US dollar, due to the ongoing tariff issue between India and the US. At the interbank foreign exchange, the domestic unit opened at 88.11 and fell to an all-time low of 88.47 against the US dollar in intraday trade.
The domestic unit settled for the day at a record low of 88.47 (provisional), registering a sharp decline of 36 paise over its previous close.
On Wednesday, the rupee recovered slightly from its record low level and ended with a gain of 4 paise at 88.11 against the US dollar.
On September 5, the rupee touched the lowest-ever intraday level of 88.38, but pared all losses before ending at Rs 88.09 against the US dollar. The unit had recorded its all-time low closing level of 88.15 against the dollar on September 2.
Why Is the Indian Rupee Falling?
According to forex traders cited by news agency PTI, a recovery in the US dollar ahead of the inflation data and foreign fund outflows further dented investors’ sentiments. Crude oil prices also gained over the past few sessions, putting further pressure on the rupee.
Traders noted that the rupee, which showed signs of minor recovery after US President Donald Trump gave positive signals about the India-US trade treaty, remains fragile due to dollar demand and global factors.
“The Indian rupee is trading near historic lows, facing pressure from strong import dollar demand, external tariff concerns and market anticipation of US inflation data and FED Reserve policy,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Bhansali added the dollar index was also up touching almost 98 levels, while Brent oil prices also were up keeping the dollar bids on the higher side. The premiums were also indicating higher due to increase in interest rate differential between India and US in the last three days. The rupee is expected to be in the range of 88.25 to 88.75 on Friday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22 per cent to 97.99.
Brent crude, the global oil benchmark, was trading 0.25 per cent lower at USD 67.32 per barrel in futures trade.
Anuj Choudhary, research analyst (currency and commodities) at Mirae Asset ShareKhan, said, “We expect the rupee to trade with a negative bias amid a recovery in the US dollar index and persistent FII outflows. Dollar demand from importers and ongoing tariff issues between India and US may also pressurise the rupee. However, positive domestic equities and renewed negotiations between India and US may support rupee at lower levels.”
On the domestic equity market front, Sensex climbed 123.58 points to settle at 81,548.73, while the Nifty advanced 32.40 points to 25,005.50.
Foreign institutional investors offloaded equities worth Rs 115.69 crore on Wednesday, according to exchange data.
Technical View
Jateen Trivedi, vice-president (research analyst- commodity and currency) of LKP Securities, said, “The rupee traded weak by 0.35% at 88.40 as mixed FII flows and a firmer dollar index near 97 kept pressure intact. Focus remains on the US CPI data, which could drive volatility in the dollar and in turn the rupee. Crude prices stayed volatile but hovered in lower zones, offering partial support. Market sentiment remains tied to updates on the US-India trade deal, which could trigger sharper moves. For now, rupee can be seen trading within 87.85-88.10 as support and 88.55-88.70 as resistance.”
(With PTI Inputs)
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
September 11, 2025, 17:21 IST
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