The Indian rupee weakens to 91 per dollar as strong dollar demand and market pressures raise concerns of a new record low

The Indian rupee edged closer to its all-time low on Tuesday as persistent dollar demand tightened market conditions, raising concerns that a fresh record may be imminent.

Also read: Indian Markets Muted Amid Foreign Outflows

The currency opened slightly weaker before sliding rapidly to 91.0525 per dollar, standing at 91.02 by 10:20 a.m. IST.

An intraday low of 90.99 was also recorded.

This marks the fourth consecutive session of losses, with the rupee depreciating roughly 1% over the period.

The current level is approaching the all-time low of 91.0750 per dollar, recorded in mid-December.

Traders said the rupee’s movement is largely driven by dollar flows, with attention now turning to the Reserve Bank of India for possible intervention.

“The moves are dependent on the flows scenario, with focus turning to the RBI if the local currency is close to breaching any major level,” a currency trader at a state-run bank said.

Bankers noted that the RBI’s near-daily intervention has provided some confidence that a new record low may not be reached immediately.

However, support on Friday and Monday was relatively light, with dollar supply offered across multiple levels rather than concentrated at a specific rate.

Elsewhere in Asia, currencies showed mixed performances, while the U.S. dollar index slipped to a one-week low.

Also read: Asian Markets Rise as Wall Street Rally Continues

Heightened tensions between the United States and European Union, sparked by President Donald Trump’s threats to revive a trade dispute over Greenland, have added further uncertainty and pushed U.S. yields higher, analysts said.