Mumbai: The Indian rupee plummeted to a historic intraday low of 92.00 against the US dollar on Thursday, intensifying concerns over India’s economic stability amid relentless foreign investor outflows and a surging greenback.
According to reports, the currency, which opened marginally higher, surrendered early gains due to heavy selling pressure from foreign institutional investors (FIIs) and importers, settling provisionally around 91.99 after touching the unprecedented mark. This depreciation marks the third record breach in less than a week, erasing recent recoveries and signaling deeper vulnerabilities in emerging market currencies, the reports said.
Several factors converged to batter the rupee. Persistent FII outflows, more than $2 billion this month alone, reflected loss of confidence in Indian equities amid global risk-off sentiment. Rising US Treasury yields, following the Federal Reserve’s steady rate stance in its first 2026 policy meet, boosted dollar demand, while crude oil prices climbing above $85 per barrel added import bill pressures for energy-dependent India.
The rupee’s slide has ripple effects across sectors. Industries, including oil refiners and pharmaceuticals, face escalated costs, potentially fuelling inflation and squeezing corporate margins. Exporters may gain competitiveness, but gains could be offset by global trade uncertainties, including delays in India-US deals under President Trump’s administration. Retail investors and remittances are hit hardest, with NRIs remitting home facing steeper conversion losses. Dilip Parmar of HDFC Securities warned of a “bullish USD-INR outlook,” eyeing the 92 psychological barrier.
The Reserve Bank of India (RBI) may intervene via dollar sales to cap volatility, though its arsenal may strain with reserves dipping post-2025 interventions. Analysts predict mild support from any dollar pullback, but geopolitical tensions—US tariffs and Middle East unrest—could push the rupee toward 93 if unchecked. For India’s $3.7 trillion economy, this milestone underscores the need for swift reforms to bolster forex resilience, according to experts.
