TNI Bureau: The rupee hit record low of 90.43 against the US dollar on Thursday, a day after breaching the key 90-mark. SBI Research notes this is the fastest ₹5 fall, with the currency dropping from 85 to 90 in under a year despite RBI intervention.

The decline is driven by FPI withdrawals, a widening trade deficit from costly imports of oil, electronics, and metals, and a strong dollar. Since April, after former US President Donald Trump’s reciprocal tariff announcement, the rupee has weakened 5.5%, with FPIs pulling out over $17 billion. High gold and silver prices have also triggered record imports, worsening the October deficit.

Chief Economic Adviser V. Anantha Nageswaran said the government is “not losing sleep” over the fall and expects an improvement next year. He added that FDI may cross $100 billion this year.

The weaker rupee raises import costs and inflation but aids exports and remittances. Experts say a controlled decline helps the RBI manage the current account deficit and preserve forex reserves.