Rupee at 90: RBI’s Calculated Move? Expert Explains Market Impact

Market experts believe the recent fall in the rupee-briefly breaching the 90 mark against the US dollar - is not a cause for panic and may even be a strategic allowance by the RBI. According to Mr. Sharma, the weakness followed the US-India trade agreement stance and FII outflows, combined with reduced RBI intervention. With inflation at historic lows and growth indicators strong, the central bank appears comfortable with mild depreciation to support falling exports and narrow the trade deficit. After hitting 90.40, the rupee recovered to 89.80, signaling a healthy two-way movement rather than uncontrolled decline. Experts say RBI will monitor for sharp volatility, but gradual depreciation may aid economic balance without hurting market sentiment.