Indian Rupee Holds Near Lifetime Low

2025-10-06 05:00 By Joshua Ferrer 1 min. read

The Indian rupee remained weak at around 88.7 per dollar, hovering near a lifetime low, as US policy moves continued to weigh on the currency.

Market sentiment remained under pressure from the steep 50% US tariff on key Indian goods linked to measures on Russian oil imports and was further dented by tighter immigration rules.

While the Reserve Bank of India has been actively intervening to curb volatility, defending the key 88.8 level, the currency is expected to face downward pressure due to hedging mismatches and foreign outflows.

In addition, the central bank’s dovish remarks on potential future rate cuts in its September meeting are also weighing on the rupee.

The RBA kept repo rates unchanged and the policy stance neutral, noting that subdued inflation opens policy space to support growth.

Markets now await upcoming September inflation figures later today, which is expected to eased below the lower end of the RBI's 2-6% target range to 1.70%.



News Stream
Indian Rupee Hits Over 1-Month Low
The Indian rupee slipped past 91.9 per dollar, marking its lowest level in over a month, as a spike in global oil prices and a firm US dollar weighed on the currency. Rising tensions in the Middle East pushed Brent crude higher, raising fears of supply disruptions through the Strait of Hormuz, which handles roughly half of India’s crude imports. At the same time, the dollar strengthened as investors shifted toward traditional safe-haven assets during the latest bout of geopolitical uncertainty, adding further headwinds for the rupee and other emerging market currencies. The RBI stepped into spot and forward markets to contain volatility, with its short-term forwards book at the lowest since September 2024. The rupee could test 91.5-93 if oil stays elevated, with portfolio outflows and importer dollar demand adding pressure. Flight disruptions and higher shipping costs are also feeding near-term energy import stress.
2026-03-02
Indian Rupee Hits 4-week Low
The Indian Rupee touched 91.30 against the USD, the lowest since February 2026. Over the past 4 weeks, US Dollar Indian Rupee lost 1.06%, and in the last 12 months, it increased 4.13%.
2026-03-02
Rupee Steady Ahead of GDP Update
The Indian rupee held steady at around 90.9 per dollar, pausing its losses from the previous sessions as investors assessed new economic data and ongoing central bank interventions. Market participants remained cautious ahead of the release of India’s updated GDP framework, which is expected to revise the country’s growth metrics. The government is updating the GDP base year to 2022-23 from 2011-12, with advance estimates suggesting 7.6% growth this fiscal year, up from the previous 7.4%. The revision gives greater weight to fast-growing sectors like the digital economy and gig work, while reducing emphasis on agriculture and informal manufacturing. Economists highlight that the updated GDP series will be pivotal for future policy decisions, with the Reserve Bank of India likely to maintain a growth-supportive stance depending on insights from the revised data.
2026-02-27