The Indian rupee fell to a record low past 90 against the US dollar on Wednesday, driven by foreign fund outflows, high crude oil prices, and trade deal uncertainty. Export sectors may benefit, while import-heavy sectors face cost pressures.
The Indian rupee plunged to an all-time low against the US dollar on Wednesday, crossing the psychologically significant 90 mark amid foreign fund outflows. The development came amid firm crude oil prices and perceived uncertainty around the India-US trade deal.
The Indian Rupee has been among the poorest-performing Asian currencies in 2025, falling by about 4-5%.
Sectoral Impact of a Weaker Rupee
Experts highlighted some sectors that could benefit from the plunging Rupee. Sunny Agrawal, Head, Fundamental Research at SBI Securities, said, export-dependent sectors like Shrimp, Textile, IT, Pharma, Engineering, Metals, and Auto can benefit from the falling Rupee. However, import-dependent sectors such as FMCG, Plastic polymers, Oil and Gas are expected to face cost pressure, he added.
Expert Commentary on Market Pressures
Anindya Banerjee, Head Commodity and Currency, Kotak Securities said the steady importer demand, particularly from sectors like Oil, Metals, and Electronics, continues to absorb available dollar liquidity. “Despite the new high, the overall price action remains orderly, with the RBI stepping in selectively to smoothen volatility rather than hold any specific level,” Banerjee highlighted.
Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities said record-high metal and bullion prices have further worsened India’s import bill, “while steep US tariffs continue to strain export competitiveness.” “This has kept weakened sentiment across equities compared to global markets and import-heavy sectors such as mineral fuels, machinery, electrical equipment, and gemstones,” he said.
Focus on RBI Intervention and Outlook
“With the RBI policy announcement on Friday, markets expect clarity on whether the central bank will step in to stabilize the currency. Technically, the Rupee is deeply oversold, and a move back above Rs 89.80 is essential for any meaningful recovery, Jateen Trivedi said.
Anindya Banerjee of Kotak Securities said despite the new high, “the overall price action remains orderly, with the RBI stepping in selectively to smooth volatility rather than hold any specific level.”
Government’s Stance on Rupee Depreciation
India’s Chief Economic Advisor V Anantha Nageswaran downplayed concerns over the rupee weakening past 90 against the US dollar, asserting that the currency’s movement remains within manageable limits and has not created macroeconomic stress.
“I am not losing my sleep over it,” he told reporters on the sidelines of a CII summit, emphasising that the current level of depreciation has neither stoked inflationary pressures nor undermined India’s export momentum. “Right now it’s not hurting our exports or inflation,” he said.
At the time of filing this report, the Rupee was trading at 90.21 per US dollar. (ANI)
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