The Indian rupee took another hit, slipping 7 paise to close provisionally at 89.94 against the US dollar on Thursday. This marks continued pressure on the INR amid global headwinds. If you're tracking rupee vs dollar today, here's what drove the slide and what to watch next.
Key Factors Behind Rupee's Depreciation
Forex traders point to a perfect storm of pressures keeping the rupee on the back foot:
Rising Crude Oil Prices: Brent crude jumped 0.85% to $60.47 per barrel, fueling import costs for oil-dependent India.
FII Outflows: Foreign institutional investors dumped equities worth Rs 1,527.71 crore on Wednesday, signaling risk aversion.
Stronger US Dollar: The dollar index edged up to 98.70, bolstered by a basket of major currencies.
US Tariff Worries: Renewed fears of punitive US tariffs could slam Indian exports, shifting sentiment from "deal in pipeline" to "back to square one."
The rupee opened at 89.96, swung between a high of 89.73 and low of 90.13, and settled lower. Domestic stocks mirrored the gloom, with Sensex crashing 780 points to 84,180.9 and Nifty dropping 264 points to 25,876.85.
Expert Outlook: What's Next for INR?
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, warns of persistent dollar buying. "India faces big trouble on exports if US tariffs rise even 10 bps," he told PTI. Expect the rupee to hover in the 89.80–90.30 range today (Friday).
RBI interventions may cap extremes, but tariff overhang looms large. Positive note: Government holds FY GDP growth at 7.4%, cementing India as the world's fastest-growing major economy despite geopolitics.
| Factor | Impact on Rupee | Current Level |
|---|---|---|
| Brent Crude | Negative (↑ costs) | $60.47 (+0.85%) |
| Dollar Index | Negative (↑ strength) | 98.70 |
| FII Flows (Wed) | Negative (sell-off) | -Rs 1,528 Cr |
| Expected Range (Fri) | - | 89.80–90.30 |
Why This Matters for You
For investors, exporters, and remittance senders, a weaker rupee means higher import bills and travel costs but boosts export competitiveness—if tariffs don't bite. Track live USD to INR rates and equity moves closely.
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What do you think—will RBI step in, or are tariffs the real rupee killer? Share in the comments!
Opinion Laboratory