New Delhi: The Indian rupee is facing strong pressure in the currency markets and is close to touching a historic low against the United States dollar. On Friday, the rupee traded near 89.49 per dollar, raising concerns among investors and importers. The Reserve Bank of India stepped in once again to support the currency by selling dollars in the market, which helped the rupee recover slightly for a short time.

Market analysts say the fall in the rupee is mainly due to high demand for dollars from importers. Exporters, on the other hand, have not been actively hedging, which has limited the flow of dollars back into the market. Investment flows from overseas have also been weak, especially in the bond market, which adds further pressure on the currency.

Even though the US dollar weakened globally on expectations of a possible interest rate cut by the United States Federal Reserve, the rupee did not gain much support. Traders say domestic factors are currently having a larger impact than global trends.

The rupee has already weakened by more than four percent this year, making it one of the underperforming currencies in Asia. Some market experts warn that the rupee could fall further and may test the level of 90 per dollar if current trends continue.

A weaker rupee increases the cost of imports, especially for fuel, electronics, and other essential goods. Exporters may benefit from a cheaper currency, but the lack of hedging suggests they are uncertain about market stability.

Economists believe that currency pressure may ease only if foreign investments return in a stronger way or if exports rise in the coming months. For now, the Reserve Bank of India is expected to continue monitoring the situation and intervene when needed to avoid sharp volatility.

Investors are now watching for upcoming global policy decisions and domestic economic data, which may influence the rupee’s direction in the weeks ahead.