Rupee Plunges to Historic 90.28 Against Dollar Amid RBI Inaction
The Indian rupee breached the psychologically critical 90 mark against the US dollar, hitting an all-time low of 90.28 in Wednesday’s session. This confirms market whispers of a protracted decline that began six months ago when the currency traded at 85.
With the US-India trade deal stalled and the Reserve Bank of India abstaining from dollar sales to prop up the rupee, importers face spiraling costs. The currency’s 6% drop since January contradicts New Delhi’s ambitions to position the INR as Asia’s transactional benchmark.
‘The RBI’s hands-off approach suggests 90-92 could become the new floor,’ said a Mumbai-based forex trader, recalling Watcher Guru’s accurate 2025 forecast. Exporters now grapple with margin compression as currency hedges unravel.
