This is the nightmare scenario the market feared. The rupee has officially breached the massive psychological threshold of ₹90, and it happened fast.
Here are the raw notes on the currency collapse:
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Rupee Nightmare: Hits All-Time Low of 90.25/Dollar Intra-Day
The currency crisis is deepening. Today, Wednesday, the rupee plummeted to a new, all-time intra-day low of ₹90.25 against the US dollar. It fell 29 paise from yesterday’s close.
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The Fall: It opened weak at ₹89.96. Slipped past ₹90.15. Then hit the record low of ₹90.25. It did manage to claw back slightly to ₹90.02, but the psychological damage is done.
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The Context: Yesterday, Tuesday, it settled at an all-time closing low of ₹89.96. The pressure is relentless.
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The Cause and Effect (Why Now?)
This collapse is a perfect storm of external and domestic stress points:
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FII Exodus: Foreign Institutional Investors (FIIs) are pulling out hard. They sold a massive ₹3,642.30 crore in equities on Tuesday. That outflow happened. And then the rupee collapsed.
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Dollar Buying: Banks are sustaining heavy buying of the US dollar. Importer demand remains high.
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Domestic Markets: The Sensex and Nifty are both down in early trade, adding domestic pressure to the local unit.
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The Missing Deal: The continued absence of the India-US trade deal is a sustained psychological drag on the currency market.
The MPC Time Bomb
The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting starts TODAY (December 3), and the interest rate decision is due on December 5.
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The Risk: Forex traders are panicking. A rate cut by the RBI, or even a dovish stance, could invite “further selling of the rupee,” according to experts.
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Global Context: This is happening even as the Dollar Index is slightly lower, and Brent Crude is stable below $63 a barrel. The rupee’s weakness is mostly internal and sentiment-driven right now.
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