Will the Rupee Stabilize Soon

Indian Rupee Crashes to Record Low Beyond 90 Per Dollar: Market Reaction & Key Reasons Explained

The Indian rupee witnessed a sharp decline on Wednesday, breaching the crucial 90-per-dollar mark for the first time in history. The domestic currency slipped to a new all-time low of 90.13 against the US dollar (USDINR), surpassing the previous record of 89.9475 set just a day earlier.

Why Is the Rupee Falling?

The steep depreciation in the rupee comes amid:

• Weak trade and portfolio flows

• Rising uncertainty over the India-US trade deal

• Continuous pressure from foreign selling in equity markets

Market experts noted that concerns around global trade dynamics and lack of clarity on tariff implications have further weighed on sentiment.

Impact on Stock Market: Nifty & Sensex React

The sharp fall in the rupee triggered volatility in the Indian stock market, with the Nifty slipping below the 26,000 mark, reflecting cautious investor behavior.
The Sensex also dropped nearly 200 points in early trade, as the weakening currency raised fears related to import-led inflation and lower FII inflows.

Despite the pressure, the market opened on a subdued note later in the session with the Sensex inching up just 12 points to 85,151 while the Nifty fell 18 points to 26,014.

Top Losers in Early Trade

Key stocks under selling pressure included:
HUL, Titan, Tata Motors PV, NTPC, BEL, Trent, Bajaj Finserv, Kotak Bank, Ultratech Cement, Maruti Suzuki, L&T, Power Grid, and ITC.

Analysts’ View: Will the Rupee Stabilize Soon?

Analysts suggested that the rupee may stabilize or even appreciate once the India-US trade agreement is finalized, which is expected later this month.

“The rupee depreciation may reverse when the India-US trade deal materialises. Much will depend on tariff details under the agreement,” experts commented.

However, they also warned that RBI’s limited intervention in the currency market has intensified worries, leading FIIs to continue selling despite strong economic fundamentals such as rising corporate earnings and solid GDP growth.

Final Outlook

The market mood remains tense, and traders are closely monitoring:

• Progress in India-US trade negotiations

• RBI’s stance on currency support

• Inflation risks from a weakening rupee

The direction of the USDINR and the stability of foreign inflows will be crucial factors shaping India’s market trajectory in the coming days.

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