FX.co ★ Indian Rupee Hits Weakest on Record

On Wednesday, the Indian rupee slumped to an unprecedented low of 91.3 per dollar, amid continuing foreign capital withdrawals and escalating geopolitical uncertainties. To date this month, foreign investors have pulled out $2.7 billion from Indian equity markets, adding to the net outflow of approximately $19 billion from the previous year. Market confidence is further impacted by the delay in a US trade deal, exacerbated by a steep 50% tariff that limits exports while ongoing import demand raises the necessity for dollars. Geopolitical tensions, such as US President Trump's renewed interest in Greenland and the potential risk of a broader US-Europe trade conflict, have fueled risk aversion. This has led investors to turn to safe-haven assets, exerting pressure on emerging market currencies like the rupee. The Reserve Bank of India has intervened by selling dollars to moderate the rupee's depreciation pace, although market analysts point out that such measures are intended to decelerate rather than reverse the trend.