The rupee hit a fresh low of 89.54 per dollar on Friday in Mumbai, driven by trade-deal delays, US sanctions concerns, stronger dollar index, and absence of RBI intervention.

BulletsIn

* Rupee breached 89.5 per dollar intraday and closed at record low 89.49.

* Sharp fall driven by delay in India–US trade deal and sanctions risk on Indian firms.

* RBI stayed out after 88.80 level broke, triggering massive short squeeze.

* Rupee weakened 0.9% in a day, second biggest fall of 2025.

* Bond yields jumped 4 bps as currency slump hit sentiment.

* Rupee became worst-performing Asian currency amid global dollar strength.

* Fed rate-cut hopes fading due to limited data during US shutdown.

* Traders caught offside rushed to buy dollars, accelerating rupee decline.

* Market expects trade deal to ease pressure on India’s current account once finalised.

* RBI’s earlier defence used significant reserves; forward short position near USD 70 billion.