Rupee crashes 93 paise to all time low of 89.61 a dollar

The rupee suffered its steepest single-day fall in over three months on Friday, closing 93 paise lower at an all-time low of 89.61 against the US dollar. The currency breached the 89-mark for the first time, tracking widespread risk-off sentiment triggered by global tech and cryptocurrency sell-offs, as well as uncertainty over the proposed India–US trade deal. The rupee opened at 88.67 and touched an intra-day low of 89.65 before settling at its weakest-ever closing level.

Forex analysts said heavy selling in global IT stocks and the sudden unwinding of risk trades pressured emerging-market currencies, including the rupee. They added that the lack of clarity on the India–US trade agreement has further weakened investor sentiment. Market participants had expected the deal to offer clearer direction on bilateral trade and economic outlook.

RBI Governor Sanjay Malhotra reiterated that the central bank does not target specific currency levels and attributed the rupee’s fall to increased dollar demand amid trade uncertainties following recent US tariff actions. He expressed confidence that India would eventually secure a favourable trade arrangement, which could help ease pressure on the current account.

Meanwhile, domestic markets mirrored the global mood, with the Sensex falling 400.76 points to 85,231.92 and the Nifty slipping 124 points to 26,068.15. Brent crude traded lower at $62 per barrel, while the dollar index inched up to 100.17. Government data released a day earlier showed flat growth in India’s eight core sectors for October, adding to the subdued economic sentiment.