Rupee Hits Fresh Record Low Of 91 Amid Dollar Demand, Portfolio Outflows

The Indian rupee slid to a fresh all-time low for the fourth consecutive session on Tuesday, pressured by strong dollar demand and continued foreign portfolio outflows.

The currency weakened past 91 per dollar, breaking its previous record low of 90.7875 hit on Monday.

The rupee is among the worst-performing emerging market currencies this year, having declined 6% against the dollar. The slide has been intensified by the impact of steep U.S. tariffs on Indian exports and persistently weak portfolio inflows.

Foreign investors have net sold more than $18 billion worth of Indian equities so far this year and are on track for record annual outflows. Reflecting the pressure, benchmark equity indices were down about 0.4% each in early trade.

Traders said the maturity of positions in the non-deliverable forwards market added to downward pressure on the rupee, though dollar sales by state-run banks, likely on behalf of the Reserve Bank of India, helped limit losses.

“The rupee's weakness is being driven primarily by tariff-related concerns and foreign investor selling, rather than a deterioration in economic fundamentals. As long as these short-term imbalances persist, pressure is likely to continue,” said Amit Pabari, managing director at CR Forex.

“In the near term, 90.00–90.20 remains a strong support zone, while 90.80–91.00 is a key resistance area,” he added.

Analysts said a sustained recovery in the rupee appears unlikely without a breakthrough in U.S.–India trade negotiations.

“Let's see what happens in the next few months,” India's trade secretary said on Monday, referring to the talks, adding that India is working with the U.S. to try to conclude a deal “sooner than later.”

Analysts noted that a rebound in exports last month and resilient economic growth have helped cushion the impact of higher U.S. tariffs, easing immediate pressure on New Delhi to seal a trade agreement.

India's exports to the U.S. rose 21% year-on-year in November, helping narrow the merchandise trade deficit to a five-month low of $24.53 billion.