The Indian rupee fell to a fresh record low, trading at Rs 90.42 per US dollar on Thursday, as persistent demand for dollars from corporates and banks outweighed brief optimism triggered by the US Federal Reserve’s recent rate cut.

While the Fed announced a widely expected rate reduction amid a sharply divided vote and signaled a prolonged pause ahead, its less-hawkish stance offered limited relief to the rupee. Asian currencies traded mixed, and the dollar index recovered slightly from a near two-month low.

Dollar Demand Drives Rupee Weakness

Market analysts attributed the rupee’s slide to heavy dollar buying by foreign and domestic banks, mainly for merchant and corporate payments.

“There is consistent dollar outflow pressure which is outweighing the supportive global cues,” a banker

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