Rupee Hits Record Low: Why RBI Is Holding Back, Sudip Bandyopadhyay Explains

The Indian rupee has slipped to an all-time low of 90.63 against the US dollar, raising concerns among investors and markets. Persistent foreign fund outflows, US–India trade uncertainty, and a widening trade deficit are adding pressure on the currency. Notably, RBI intervention has been relatively muted, sparking questions over policy intent. Experts suggest this may be a deliberate strategy, with policymakers allowing controlled depreciation to preserve India’s export competitiveness amid global tariff pressures. While a 2–3% annual fall in the rupee is typically acceptable, authorities appear willing to tolerate a steeper decline for now. What does this mean for investors, and how far could the rupee slide from here?