Rupee Plunges to All-Time Low of 91.74 Against Dollar: What's Driving the Fall?

• The Indian rupee hit a fresh all-time low of 91.74 against the US dollar on Wednesday, falling 77 paise in intra-day trade.
• Sustained foreign fund outflows, strong dollar demand, and heightened geopolitical tensions in Europe are key factors driving the depreciation.
• Foreign institutional investors continued selling equities, with ₹2,938.33 crore sold on Tuesday, limiting dollar inflows.
• Metal importers' robust demand for the greenback further added pressure on the local foreign exchange market.
• ANZ predicts further weakening, with levels of 92.5–93 possible if current pressures persist, noting RBI's tolerance for the rupee's decline.

Why It Matters: The Indian rupee plunged to a record low of 91.74 against the dollar due to outflows, dollar demand, and global tensions.