Indian rupee collapses before Union Budget 2026, reaches record low of 92 against dollar
New Delhi. Indian Rupee Hits All Time Low Against dollar: A big fall has been seen in the Indian Rupee before the budget. The Indian rupee has fallen to a record low of around Rs 92 (91.98) against the US dollar. It also surpassed its previous low of 91.9650.
India's rupee reached its lowest ever level on Thursday. Persistent weakness in foreign capital flows and a rush to hedge against further downside have overshadowed signals from a strong domestic economy.
The Indian rupee gave up early gains and hit a record low of 91.99 against the US dollar in intraday trade amid weak domestic markets and continued foreign fund outflows, forex traders said. Apart from this, rise in crude oil prices and rise in US treasury yields also weighed on the rupee.
How much has the Indian rupee fallen so far this year?
The currency has fallen 2% so far this year and about 5% since US President Donald Trump imposed heavy tariffs on India's merchandise exports in August. This comes as India's GDP grew 8.2% in the quarter ended September 30, according to official data.
At the Interbank Foreign Exchange, the rupee opened at 91.45 and then hit an intraday high of 91.41 against the greenback. It touched an all-time intraday low of 92.00 before closing the day at a record low of 91.88 (tentative), 30 paise lower than its previous close.
Where will India's rupee go in the next 12 months?
"We expect the current high US tariffs on Indian exports to eventually wane, but the delays in the meantime are putting pressure on India's external balances," Goldman Sachs analysts said in a note.
The firm expects the rupee to fall to 94 per dollar (Indian Rupee Hits All Time Low Against dollar) in the next 12 months.
Traders said the Reserve Bank of India may have intervened before the local spot market opened on Thursday. A trader at a foreign bank said the intervention was probably meant to slow down the decline as the rupee was approaching the psychologically important level of 92.
After crossing the level of 91 for the first time just six trading sessions ago, the rupee has fallen to around 92. The Central Bank has said that it does not target any level or band of the currency and intervenes only to prevent excessive fluctuations.
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