Rupee hits all-time low of 89.48 against US dollar

The Indian rupee extended its decline on Friday (November 21), dropping to an all-time low of 89.48 against the US dollar, as weakening risk sentiment and reduced expectations of a US Federal Reserve rate cut continued to weigh on emerging-market currencies.

The rupee’s latest fall marks a depreciation of nearly 80 paise from Thursday’s close of 88.68.

The currency briefly touched 88.83 in early trade, breaching multiple previous lows, before weakening further on the interbank order-matching platform, where it was last quoted at 89.48.

Traders said the rupee’s slide accelerated after it broke past the long-defended 88.80 level, with the Reserve Bank of India appearing to scale back its recent interventions. The absence of strong dollar supply from exporters and steady hedging demand from importers added to the downward momentum.

The rupee has been under strain since the US imposed steep tariffs on Indian exports in late August. Foreign investors have withdrawn $16.5 billion from Indian equities so far this year, making the currency one of the weakest performers in Asia in 2025.

A trader at a private sector bank noted that “volumes spiked sharply once 88.80 gave way,” indicating heightened activity after the key support level was breached.

Mitul Kotecha, Head – FX & EM Macro Strategy Asia at Barclays, said the move reflected “pent-up demand for dollars” finally coming through.

“We have seen the RBI holding a line in the sand just below the 89 level, and clearly that’s broken today. A surprise for many people is where the RBI is at this point in time, and whether they will come in now and reverse or dampen this move,” he said.

Kotecha added that a “tough risk-off session in US markets” and broad dollar demand were also contributing factors. “Clearly, this move has taken many by surprise, and the fact that we have not seen the cap hold, as we had in recent weeks, has caught investors off guard,” he said.

-With Reuters inputs