The Indian rupee extended its decline on Friday, November 21, plunging to an all-time low of 89.48 against the US dollar. The sharp fall comes amid weakening global risk sentiment and dwindling hopes for a US Federal Reserve rate cut, factors weighing heavily on emerging-market currencies like the rupee.<\/p>\n
The rupee fell nearly 80 paise from Thursday\u2019s close of 88.68. It briefly touched 88.83 in early trade, breaking multiple previous lows, before slipping further on the interbank order-matching platform.<\/p>\n
Market participants said the slide accelerated after the rupee breached the long-held support level of 88.80. Analysts noted the Reserve Bank of India (RBI) appeared to scale back recent interventions to support the currency. A lack of strong dollar supply from exporters and steady hedging demand from importers added to the downward pressure.<\/p>\n
The rupee has been under sustained pressure since the US imposed significant tariffs on Indian exports in late August. Foreign investors have pulled out $16.5 billion from Indian equities year-to-date, making the rupee one of Asia\u2019s weakest currencies in 2025.<\/p>\n
A trader at a private-sector bank observed, \u201cVolumes spiked sharply once 88.80 gave way,\u201d indicating increased trading activity after the key support was breached.<\/p>\n
Mitul Kotecha, Head of FX & Emerging Markets Macro Strategy Asia at Barclays, commented that the movement reflected \u201cpent-up demand for dollars\u201d arriving in the market.<\/p>\n
\u201cWe have seen the RBI holding a line just below the 89 level, but today that line was broken. The question now is whether the RBI will intervene to reverse or dampen this move,\u201d Kotecha said.<\/p>\n
He added that a \u201ctough risk-off session in US markets\u201d and broad demand for the dollar contributed to the rupee\u2019s weakness. \u201cThe sudden loss of the cap surprised many, catching investors off guard,\u201d he noted.<\/p>\n
The rupee\u2019s historic low underscores the challenges facing emerging markets amidst global uncertainties, raising concerns about inflation and import costs in India in the coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"The Indian rupee extended its decline on Friday, November 21, plunging to an all-time low of 89.48 against…\n","protected":false},"author":2,"featured_media":148438,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-148437","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/148437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=148437"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/148437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/148438"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=148437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=148437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=148437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}