The Indian currency fell 0.4% to 96.85 per dollar on Oct. 7. Bloomberg described it as Asia’s weakest currency that day.
The rupee moved closer to its record low of 96.965 per dollar, reached in May. Against a backdrop of currency weakness and rising inflation, the Reserve Bank of India raised its key rate from 5.25% to 5.5%. It was the first increase since 2023.
Bloomberg reported that investors were disappointed the central bank did not take more forceful steps to tighten liquidity and support the rupee. The currency continued to fall despite the rate increase.
India’s economy grew 7.8% in the first financial quarter of 2026, according to figures cited in the report. Inflation had risen for nine consecutive months.