Indian Rupee Hits Record Low of 91.97 Per Dollar Amid Strong Dollar Demand

• The Indian Rupee depreciated to a new all-time low of 91.97 per dollar on Friday, closing down by 41 paise.
• Strong dollar demand from corporates, importers, and oil companies for large foreign payments and loan repayments is a primary driver of the rupee's fall.
• Continuous selling by Foreign Portfolio Investors (FPIs) and global geopolitical tensions, including trade wars and Middle East instability, are exerting significant pressure.
• Brief relief from US President Donald Trump's softened stance on Europe tariffs was short-lived, failing to sustain rupee recovery.
• Crossing the 92 per dollar mark could lead to increased import bills, accelerated inflation, higher company costs, and negatively impact market sentiment.

Why It Matters: The Indian Rupee hit a record low due to strong dollar demand, FPI selling, and global tensions.