The Indian rupee fell to an all-time low, slipping past 90 per US dollar in early trade on Wednesday, marking an unprecedented milestone.
The decline comes amid sustained foreign capital outflows from Indian markets and a broadly strengthening US dollar against major global currencies. Traders noted that while a fall was expected, the rapid pace of the slide surprised many market participants.
The Reserve Bank of India (RBI) is believed to have intervened to curb volatility, but the currency struggled to recover significantly throughout the day. Analysts are watching closely to see if further measures will be needed to stabilize the rupee in the coming sessions.
The record breach raises concerns for importers, exporters, and policymakers, as a weaker rupee can increase inflationary pressures and impact the cost of imported goods.