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Below the Quote on Rupee Breaches Rs.90: Key Market Implications by Rahul Gupta, Chief Business Officer, Ashika Group

USDINR breaching the Rs.90 mark is not a one-day event but the culmination of sustained capital outflows, persistent trade imbalances, trade deal, and a stronger global dollar. While the RBI has stepped in periodically to smooth volatility, the broader trend reflects a recalibration of India’s external sector under tighter global financial conditions.

In the near term, the rupee is likely to remain under pressure and could trade in the 89.50–91.20 range, especially if crude oil prices stay elevated and foreign investors remain risk-averse. A meaningful recovery will depend on a revival in foreign inflows, clarity on global rate-cut cycles, and improvement in India’s export momentum. Until then, the currency is expected to stay weak but orderly, guided by selective RBI intervention.

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