Rupee in a free fall, slips for seventh straight session; what's next?

The Indian rupee hit a fresh record low in early deals on Thursday, trading over 90 mark for the second consecutive session.  After breaching the key 90 mark against the US dollar for the first time on Wednesday, the rupee slipped 29 paise to a fresh low of 90.43, extending the Indian currency's losing streak for the seventh straight session today.

Analysts attribute high demand for dollar and a delay in the India-US trade deal for the rupee crash.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said,"The fall is largely driven by the absence of clarity on the India–US trade deal, coupled with record-high bullion and metal prices that have worsened the import bill. Higher US tariffs and limited RBI intervention have added to the pressure. With the RBI policy due Friday, markets will look for cues on whether the fall will stabilise; technically, the rupee remains oversold and needs to reclaim 89.80 to recover meaningfully."

Since late August, when the United States imposed steep tariffs on Indian exports, foreign investors have withdrawn $16.5 billion from Indian equities, positioning the rupee as the weakest Asian currencies in 2025. The Indian rupee has fallen 5.54% against the US dollar in 2025.

Dilip Parmar, Research Analyst, HDFC Securities said, "Substantial foreign institutional investor outflows and restrained intervention from the central bank ahead of the crucial Monetary Policy Committee (MPC) decision, are allowing market forces greater sway. Technically, the Spot USD/INR pair is facing a critical resistance level at 90.30, meanwhile, a key support level at 89.80 must be held to prevent further losses."