The RBI has stayed on the sidelines, without visible intervention to support the currency Photocredit: Prakash Singh
The rupid hit a low point on Thursday, weighed by the demand for dollars of oil and defense companies for import payments, even if the concern about the steep rates of the US remains on the Indian export of the market sentiments.
The currency deposited to close to a record layer of 88,4425 per US dollar compared to the previous closure of 88.10, whereby the RBI reportedly does not intervene in the market. It reached a record layer of 88.36 last Friday.
Amit Pabari, MD, CR Forex Advisors, noted that the rupee slid to a fresh low point against the dollar, which marked a continuation of his steady decline in the midst of persistent external pressure.
This time it seems that the RBI remained on the sidelines, without visible intervention to support the currency, he added.
Rupee performs subject despite a weaker American dollar
Pabari noted that despite the US dollar this year nearly 9.5 percent weakened, which stimulates most Asian currency, the rupid has the bottom. Since January, it has distributed 3.37 percent since April compared to the dollar and 4.57 percent, making it the weakest currency in the region.
The Taiwan dollar and Thai Baht, on the other hand, have won 7.48 percent and 7.38 percent respectively, underlining the divergence in Asian currency performance.
Against this background, Pabari expects USD/INR to act in a short-term reach of 87.90-88.60. While the tariff pressure continues to weigh on sentiment, the gradual weakness and expectations of the dollar of a potential FED rate reduce some scope for the currency to find support in the short term, he added.
Equity outflows, Add trade deficit to depreciation pressure
Dipti Chital, CEO, Mecklai Financial Services, said that the fall of rupees against the US dollar will be on the back of persistent share outlets, the American tariff pressure on Indian export and a broader trade shortage was fed by gold, rough and raw material imports.
A sturdy US dollar, supported by increased yields and nourishing uncertainty, has increased the pressure on emerging market currencies, including the rupid, she added.
“After active intervention in August, the RBI took a step back, making more market -driven movements possible. Recent action is limited to the flattening of sharp volatility instead of defending specific levels, to keep the currency more exposed. The risks in the short term are from trade tensions, capital results in the end of the end. Chital.
She noted that the Dia of the rupee reflects both the worldwide and the domestic headwind, and with the RBI currently in a hands-off mode, further pressure cannot be excluded.
Currency fissure in the midst of domestic and global headwind
IFA Global said in a memorandum that although the RBI has intervened through the state-based banks to smooth out the volatility, it does not defend a specific level, so that the currency outlook remains fragile.
The rupid remains trapped between domestic trade and capital pressure and worldwide dollar movements formed by American inflation and the FED policy, it added. As Global, in a report, said
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Published on September 11, 2025
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