The Indian rupee began Tuesday's trading session by touching a new historic low against the US dollar, intensifying concerns about currency stability and import costs. The domestic currency weakened by 9 paise, setting an unprecedented benchmark for its exchange rate.
Rupee Opens at Unprecedented Level
At the opening bell in the interbank foreign exchange market, the rupee was quoted at 90.87 against the US dollar. This opening figure marked a fresh all-time low, surpassing any previous levels recorded. The decline from its previous closing position was a clear 9 paise, indicating sustained pressure on the Indian currency.
Narrow Trading Range in Early Session
Following the weak opening, the rupee's movement was confined within a tight band during the initial hours of trade. Market data showed the currency fluctuating between 90.77 and 90.87 against the greenback. This narrow range suggests a period of cautious trading as market participants assessed the driving factors behind the fall and potential intervention from the Reserve Bank of India.
Context and Market Implications
The record-setting decline on December 16, 2025, adds to the rupee's recent volatility. A weaker rupee has direct consequences for the Indian economy, making imports more expensive and potentially fueling inflation. Key sectors like oil and electronics, which rely heavily on dollar-denominated imports, face immediate cost pressures. Analysts will be closely watching for official commentary and any measures from monetary authorities to manage the currency's slide and ensure orderly market conditions.
