The rupee opened slightly weaker and then slid rapidly to 91.0525 per dollar. By 10:20 a.m. IST, it stood at 91.02, after closing at 90.91 in the previous session. The currency also touched an intraday low of 90.99.
This marks the fourth consecutive session of losses, during which the rupee has depreciated by about 1%. The currency is now hovering near its all-time low of 91.0750 per dollar, recorded in mid-December.
Market participants said the rupee’s movement is heavily driven by dollar flows, and attention is turning to the Reserve Bank of India (RBI) as the currency nears major levels.
“The moves are dependent on the flows scenario, with focus turning to the RBI if the local currency is close to breaching any major level,” a currency trader at a state-run bank said.
Bankers noted that the RBI’s near-daily intervention has provided some confidence to traders that a new record low may not be reached immediately. However, the central bank’s support on Friday and Monday was described as relatively light, with dollar supply offered at multiple levels rather than a concentrated defence at a specific rate.
Elsewhere in Asia, currencies showed mixed performance, while the U.S. dollar index slipped to its lowest level in a week.
Heightened tensions between the United States and the European Union have weighed on the dollar and pushed U.S. yields higher. Concerns escalated after U.S. President Donald Trump’s threats to revive a trade dispute with Europe over Greenland.
These developments have added fresh uncertainty to U.S.-EU relations and could signal a resurgence in trade tensions, DBS Bank noted in a market commentary.