The Indian rupee plunged to a record low, closing at 87.4650 against the US dollar on Wednesday, marking a 0.4% decline in a single day. The sharp depreciation is driven by growing expectations of an imminent interest rate cut by the Reserve Bank of India (RBI) and the triggering of stop-loss orders in the forex market.
With a 2% decline year-to-date, the rupee has now become the worst-performing major Asian currency of 2025. Analysts attribute this slide to persistent foreign capital outflows, global trade uncertainties, and concerns over domestic monetary policy easing.
Adding to market speculation, the RBI’s Monetary Policy Committee (MPC) is widely expected to announce a 25 basis point rate cut in its upcoming meeting, further shaping investor sentiment. As pressure mounts, all eyes remain on the central bank’s next move to stabilize the currency.
