Indian rupee hits record low against dollar, market volatility and global factors add pressure

National News: The Indian rupee continued its downward slide against the US dollar on Tuesday, hitting a new record low. The currency opened at 88.73 in the interbank market and finally closed at 88.81, down 13 paise from the previous close of 88.68. It even touched an intraday low of 88.82. This decline reflects a combination of weak domestic equities, global capital outflows, and a stronger greenback. Traders observed that investor sentiment remains fragile due to fears of slowing growth.

Previous lows crossed again

This fall comes shortly after the rupee had touched 88.80 on September 30, marking another lifetime low. The trend highlights the mounting pressure on India’s currency amid shifting global and local factors. The dollar index, which measures the US currency’s performance against six major peers, was trading slightly higher at 99.36. A firm dollar means more pain for the rupee as import costs rise and financial markets adjust to capital movements. Experts warn this weakness may persist.

RBI intervention and oil prices

Forex dealers said the Reserve Bank of India intervened at times to slow down the fall, preventing sharper declines. Falling crude oil prices also helped contain losses. Global benchmark Brent crude futures dropped 2.15 percent to $61.99 per barrel. Analysts believe cheaper oil could ease pressure on the rupee by reducing India’s import bill. At the same time, RBI actions in the forex market signal its readiness to prevent extreme volatility and protect currency stability.

Factors hurting investor confidence

Investor mood has been hit by concerns over foreign capital outflows. Global risk aversion has led many foreign institutional investors to exit Indian equities. According to exchange data, FIIs sold shares worth ₹1,508.53 crore on Tuesday alone. Experts add that US-India trade tariffs and global geopolitical tensions are further denting confidence. The combination of weak markets and dollar strength has made the rupee’s position more vulnerable. Sentiment may recover if global risks ease.

Possible relief in near future

Currency analysts suggest that the rupee could find some stability in the coming weeks. A slowdown in global crude prices, combined with possible US Federal Reserve rate cuts, may reduce dollar strength. Some analysts also point out that ongoing financial stress in the US, including departmental shutdowns, could eventually weaken the dollar. If this happens, the rupee may bounce back slightly. For now, experts expect the rupee-dollar rate to remain between 88.50 and 89.

Domestic economy indicators

Domestically, India’s macroeconomic indicators also came into focus. Consumer Price Index inflation dropped to 1.54 percent in September from 2.07 percent in August, signaling softening price pressures. Wholesale Price Index inflation fell to 0.13 percent from 0.52 percent. Meanwhile, stock markets closed lower, with the Sensex slipping 297 points to 82,029 and the Nifty falling 81 points to 25,145. These weak equity trends added to the rupee’s struggles as investors sought safer global assets.

Outlook for the rupee ahead

Looking forward, the rupee’s movement will depend heavily on global cues, oil prices, and foreign capital flows. While RBI is expected to continue interventions to reduce sharp swings, markets will remain sensitive to US policies and global growth signals. Experts caution that unless foreign investor confidence returns and domestic markets stabilize, the rupee may continue hovering near its record lows. For now, India must brace itself for a challenging currency environment.