Rupee Hits Fresh Record Low, Worst Asian Currency So Far In 2025

Indian Rupee hit record low of 89.80 against the US dollar on Monday becoming the worst performing currency in Asian peers on a year-to-date basis. The Indian currency has fallen 4.6% year-to-date.

"The overall trend stays weak, with the rupee consistently facing a hurdle near 89.25 due to persistent dollar strength and mixed FII activity," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Forex traders said significant dollar demand by importers has exerted persistent downward pressure on the local currency, reported PTI.

On Friday, the rupee dropped nine paise to settle at 89.45 against the US dollar.

In the last month it also saw its steepest fall in over three years, the domestic currency nosedived 98 paise to finally settle at 89.66 against the American currency. The previous biggest one-day fall was recorded at 99 paise against the dollar on February 24, 2022. The rupee also weakened past a psychologically crucial level of 89 against US dollar in the last month.

According to trader's that spoke to NDTV Profit, RBI is said to be more tolerant of wider band of volatility and is not actively intervening in the currency market.

In addition, they told NDTV Profit that RBI will only intervene when speculative trades take place for now.

They also added that the market is affected by delays in trade deal conclusion.

"With no clear progress on the India–US trade deal and uncertainty still dominating sentiment, rupee weakness may continue toward the 90.00 mark," added Trivedi.

According to Trivedi immediate resistance for the rupee now stands at 89.20, while the bias remains firmly on the downside.

Anindya Banerjee of Kotak Securities also told NDTV Profit that Indian rupee remains undervalued and 90 remains an important psychological level for Dollar rupee.