Rupee Faces Major Shock… Hits All-Time Low Level

The Indian rupee plunged to a historic low against the US dollar on Friday. The currency dropped by 98 paise in a single session, closing at 89.66 — marking the first time the rupee has crossed the 89-per-dollar level.

Such a steep one-day fall has not occurred in the past three years, with the last major drop of similar magnitude recorded on February 24, 2022. Over the past year, the rupee has weakened by 4.6 percent, making it one of the most underperforming currencies in Asia.

Analysts explain that a sudden spike in dollar demand from importers, along with a strengthening global dollar index, created heavy pressure on the rupee. Additional factors such as US sanctions on India’s oil trade with Iran, selling pressure in technology stocks, and outflow of foreign investments also contributed to the decline.

According to Anuj Gupta, Director of Global Research at Yawellth, the rupee may soon breach the 90-per-dollar mark if current trends continue.