Rupee Crosses 91 per Dollar: Record Low and Causes
Why in the news
The rupee slid past 91 to the dollar in trade and ended at a new low, the worst showing among Asian currencies this year.
Key facts
- Intraday low: 91.14; close: 90.93.
- Outflows: FPI selling of roughly $2.7 billion, among the biggest monthly exits of 2025.
| Factor | Effect |
|---|---|
| India-US trade deal uncertainty, global trade tensions | Weaker sentiment, more risk aversion |
| FPI capital outflows | Pressure on the rupee |
| Rising US bond yields, expected Bank of Japan hike | Yen carry trade unwinds; emerging-market assets sold |
RBI’s stance
- Restrained intervention looks deliberate, given strong growth and controlled inflation.
- A weaker rupee supports exports; the currency adjusts within limits.
Background
- Analysts say earlier tight control near ₹83 per dollar limited flexibility.
Exam angle
- Close: 90.93.
- Yen carry trade unwinding added pressure.