Rupee Crashes To 90: Will RBI Cut Rates? Aditya Pagaria On GDP, Liquidity & Policy

The Indian rupee has hit a record low of 90.13 against the US dollar, raising market concerns despite 8.2% GDP growth, the highest in six quarters. In an exclusive conversation, Aditya Pagaria, Senior Fixed Income Fund Manager at Axis Mutual Fund, analyzes what’s driving the currency’s sharp decline and what the upcoming RBI policy could signal. With inflation nearly at 0%, expectations of a 25-bps rate cut remain divided, making Friday’s policy outcome a 50-50 scenario. Liquidity, currently comfortable at ₹4 lakh crore, may tighten significantly by March. Bagaria also discusses yen carry trade risks, bond investment strategies, and how investors should position ahead. All eyes now turn to the RBI’s commentary and tone.