Indian Rupee Hits Record Low of 92 per Dollar, Down 2% So Far This Year

Indian Rupee Falls to Record Low Near 92 per Dollar

The Indian rupee fell to a record low against the US dollar, sliding to 91.9850 in early trade and breaking its previous all-time low of 91.9650 touched last week. This sharp decline pushed the currency dangerously close to the 92 per dollar level, a key psychological mark in the spot market, and highlighted growing pressure on the rupee despite strong domestic economic fundamentals.

Rupee Extends Losses in 2026

So far this year, the rupee has weakened by 2%, while it has declined nearly 5% since the United States imposed higher tariffs on Indian exports. The currency has also underperformed most of its Asian peers, reflecting heightened sensitivity to global developments and capital flows.

Foreign Outflows and Dollar Hedging Drive Weakness

Several factors have weighed heavily on the Indian rupee. Foreign portfolio investors continue to pull funds out of Indian markets, while importers and companies with foreign currency exposure have increased dollar hedging to protect against further depreciation. At the same time, exporters have slowed their dollar sales, reducing supply in the foreign exchange market and adding to downward pressure on the rupee.

RBI Acts to Smooth Volatility

Market participants believe the Reserve Bank of India intervened before the start of local trading to curb sharp movements as the rupee approached the 92 level. The central bank has repeatedly stated that it does not target a specific exchange rate and steps in only to manage excess volatility.

Strong Growth Fails to Support Currency

The rupee’s fall has come despite robust economic growth, with India’s GDP expanding 8.2% in the quarter ended September. Analysts note that external pressures are currently overpowering domestic strengths.

Analysts Warn of Further Decline

Goldman Sachs expects the rupee to weaken to 94 per dollar over the next 12 months, citing delayed relief from US tariffs and stress on India’s external balances. Rising corporate hedging and tighter dollar supply could keep the currency under pressure in the near term.

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