Rupee Hits All-Time Low

The Indian rupee hit a new record low on Monday, pressured by increased hedging from importers and rising short positions amid elevated U.S. tariffs. The rupee dropped to 88.33 against the U.S. dollar, surpassing its previous all-time low of 88.3075 set last Friday. According to analysts, the currency continues to face downside pressure that began late last week.

Forex traders reported that the rupee opened at 88.18 and quickly slipped to 88.26 in early trade, marking a 17 paise drop from the previous close. Last Friday, the rupee had breached the 88 mark for the first time, settling at 88.09. It also touched an intraday low of 88.31 after the RBI allowed it to break the 87.80 support level it had maintained for six months.

Anuj Gupta from Ya Wealth Research suggested the rupee could weaken further to 89–90 if current trends persist, although RBI intervention and possible relief from a U.S. court ruling on tariffs may provide support. Despite strong GDP data at 7.8% growth, FPI outflows and weak oil prices continue to weigh on sentiment.