Rupee falls to record low of 90.42 against US Dollar

The Indian rupee depreciated to a fresh record low against the US dollar on Thursday, weakening past the ₹90.42 mark. The currency was trading around ₹90.42 per dollar at 1:45 PM. This decline occurred despite the brief period of optimism triggered by the US Federal Reserve's recent interest rate cut, as persistent dollar demand from large domestic corporates and lenders quickly overshadowed the positive global cues.

On Wednesday, the US Federal Reserve delivered a widely anticipated rate cut, though the vote was sharply divided. Crucially, the Fed signaled a prolonged pause in future rate hikes, leading to a less-hawkish outlook that initially put downward pressure on the dollar index. In Asian markets, various currencies showed mixed performance, and the dollar index managed to recover slightly from a near two-month low established earlier.

However, the moderate weakness observed in the greenback offered very little relief to the Indian rupee. Analysts suggest that the domestic demand for the US dollar—driven by corporate needs for imports and overseas payments, along with steady dollar buying by banks—proved too strong for the currency to sustain any gains from the globally weakened dollar. This internal pressure kept the rupee on a downward trajectory, pushing it to historic lows.