Rupee's Historic Plunge: Fastest Depreciation in 20 Years, Crosses 91 Against Dollar

• Indian Rupee crosses 91 against the US dollar for the first time, marking a historic low.
• The rupee depreciated by 30 rupees (from 60 to 90) in just 12 years, a pace that previously took 20 years.
• Factors include foreign investor selling, rising dollar demand, limited RBI intervention, and aggressive importer buying.
• Rupee is among the weakest Asian currencies, depreciating 6% year-to-date, with FPIs selling $18 billion.
• While a weaker rupee aids exporters, concerns remain over high trade deficits and potential long-term pressure towards 91.5.

Why It Matters: Rupee's rapid fall to 91 against the dollar marks a 20-year record, driven by FPI outflows and dollar demand.