Chief Financial Adviser (CEA) to the Authorities V Anantha Nageswaran on Wednesday mentioned the federal government just isn’t “dropping sleep” over the rupee breaching the 90-per-dollar mark, asserting that the foreign money’s slide has not meaningfully affected both inflation or export competitiveness. Talking on the sidelines of a CII occasion, he acknowledged the current volatility however expressed confidence that the rupee “ought to enhance subsequent yr.”
The feedback got here on a day when the Indian foreign money prolonged its decline, slipping to Rs 90.30 per greenback in intraday commerce—its weakest stage on report. The rupee opened at Rs 89.96 on Wednesday and fell to Rs 90.15, earlier than touching a deeper low amid sustained promoting strain. The foreign money has now depreciated practically 5% in 2025, reflecting a mixture of world and home elements.
Analysts attribute the newest leg of the slide to uncertainty across the India–US commerce deal, muted intervention by the Reserve Financial institution of India (RBI), and continued international investor outflows. The central financial institution has largely stayed on the sidelines in current periods, permitting market forces to dictate motion. This vacuum, analysts say, has added to skittish sentiment.
Fairness markets, too, have reacted to the rupee’s weak spot. The Sensex has slipped practically 1% over the previous week, hitting a low of 84,763.64 on Wednesday, down about 0.4% from the earlier shut. Weak point throughout import-heavy sectors and sustained world risk-off sentiment additionally weighed on the index.
A number of headwinds, little assist
Market specialists say the rupee’s troubles stem from a cluster of pressures hitting concurrently. Madan Sabnavis, Chief Economist, Financial institution of Baroda, mentioned the autumn is being pushed by FPI outflows, a possible widening of the commerce deficit, and slowing exports. “The greenback index is beneath 100, so the rupee ought to ideally be agency. However RBI seems largely silent on intervention,” he mentioned. That is reinforcing sentiment-driven depreciation, he added, cautioning that whereas exporters could profit on the margin, “it’s not excellent news for importers or inflation.”
Sabnavis famous that after the rupee breaches a key stage and stays there for just a few days, the market treats it because the “new benchmark.” He mentioned merchants are speaking a couple of transfer towards 91, however expects a possible correction again to 88–89 ranges after the RBI’s coverage announcement.
Jateen Trivedi, VP – Commodity and Foreign money Analysis at LKP Securities, mentioned the absence of concrete progress on the commerce deal is weighing closely. “Markets now need concrete numbers relatively than broad assurances,” he mentioned, including that record-high metallic and bullion costs have inflated India’s import invoice. Muted RBI motion has additionally allowed depreciation to speed up. Trivedi mentioned the rupee is “deeply oversold” and should reclaim ₹89.80 for any significant restoration.
Company leaders sound warning
Amid the turmoil, company voices are urging companies to organize for a extra demanding atmosphere. Uday Kotak, MD & CEO of Kotak Mahindra Financial institution, mentioned Indian firms should “shake out of their consolation zone.” Citing persistent FII and personal fairness promoting, he wrote on X: “₹@90… Time will inform who’s smarter. For now, foreigners appear smarter… It is a lengthy sport.”
Regardless of the rupee’s droop, the federal government maintains that the foreign money stays broadly secure on real-effective phrases—and expects macro fundamentals to assist a restoration in 2026.
