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Rupee Slumps 27 Paise To Hit Record Low Of 86.31 Against USD

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Indian rupee touched an all-time low against US dollar. At the time of filing this report, the rupee was trading at 86.40 against US dollar.

Experts say the volatility trends show that the rupee will drop to 87 by March end.

“As per implied volatility trends, there are 80 per cent odds that the currency will drop to 87 between now and March-end, up from 27 per cent a month ago.” says Akshay Chinchalkar, Head of Research, Axis Securities.

Akshay adds that rising treasury yields and surge in crude prices has dampened the outlook for the Indian currency. The rupee has dropped for 16 straight weeks, which has never occurred in its history.

“India’s Rupee slumped beyond 86 this morning as a global dollar advance fueled by rising treasury yields and a surge in oil further dampened the outlook for the rupee. Offshore markets continue to bet against the rupee via options, where dollar-rupee out of-the-money calls have been traded aggressively last week. The rupee has now dropped for 16 straight weeks, which has never occurred in its history,” he said.

Ajay Bagga Banking and market expert disagrees and says, rupee is facing pressure in line with other global currencies. In 2024, it has performed better than other emerging markets (EMs)

“The Rupee is facing pressure in line with other global currencies. In CY2024 the rupee was a relative outperformer versus other EMs. In 2025 we are seeing the continuation of US economic and bond yield exceptionalism which is leading to further strength in the US dollar and global currencies weakness.” said Ajay Bagga Banking and market expert.

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