Despite the Indian rupee falling to a fresh record low and breaching the key 90-per-dollar mark, the Reserve Bank of India has remained largely absent from the market, stepping in only at select levels. Currency specialists believe this restrained approach hints at a possible surprise in the upcoming monetary policy, with some expecting a notable statement or measure in the December announcement.
A treasury official indicated that the RBI may have intervened around 90.16–90.17, acting two to three times as the rupee slipped past the psychological barrier. Analysts like Dilip Parmar say the central bank’s limited involvement has allowed the currency to slide freely from around 88.81 to above 90. Kunal Sodhani of Shinhan Bank noted that the RBI seems to be letting market forces determine a new trading band. Gaura Sengupta from IDFC First Bank added that reduced intervention helps prevent liquidity from tightening.
The rupee opened at its weakest level ever amid continued equity outflows and uncertainty surrounding the India–US trade deal, trading near 90.1450 by mid-afternoon. Experts expect the RBI to address the rupee’s fall in its policy review but avoid signalling any target level. Bloomberg data shows the rupee has fallen 5.08% this year, making it Asia’s second-worst performer after Indonesia’s rupiah.
