Indian rupee hits record low amid weak Asian currencies

The Indian rupee hit a record low on Thursday due to a drop in Asian currencies, contributing to the negative sentiment surrounding the currency ahead of an important monetary policy decision.

Uncertainty surrounding US trade tariffs and ongoing portfolio outflows have negatively impacted the rupee in the past two months, causing it to be the weakest performing Asian currency in 2025.

The rupee hit a historic low of 87.5825 during the trading session before ending at 87.5775, marking a 0.1 per cent decrease for the day and a decline of over 2 per cent year-to-date.

Short positions on the rupee have increased to their highest level since mid-July 2022, despite a more positive outlook on other regional currencies, according to a recent Reuters poll.

The 1-month 25 delta dollar-rupee risk reversal, a measure of volatility, has also increased, indicating that the cost of betting against the rupee through options has gone up compared to betting on its appreciation.

Attribution: Reuters

Subediting: Y.Yasser