Rupee declines to all-time low of 88.44

BANERJEE SAID THE RBI's hands-off stance was also to offer exporters some cushion amid trade uncertainty.

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On Thursday, after a weak opening lower at 88.12, the rupee touched an all-time intra-day low of 88.45 before closing at 88.44. Trade uncertainty between the US and India has seen a sustained outflow of foreign investors. Sentiment for the rupee is also negative due to concerns over the current account balance and the possibility of an increase in the trade deficit.

FPI outflows from domestic equity markets since July 2025 to date are to the tune of ₹65,000 crore. This has put pressure on the rupee, which has lost nearly 3.5% in the current financial year—the biggest loser among Asian currencies. Barring the Hong Kong dollar, which has lost 0.11%, the rest of the Asian currencies in FY26 have gained from 0.04% to 9.5%.

"Despite the dollar index easing from 109 to 97, the rupee hasn't gained; it's quoting at a steep discount due to persistent uncertainty," Banerjee said.