Asian forex steady, rupee hits record low

The USDINR pair last traded 0.3% higher at 90.55 rupees, eclipsing its previous day’s record low of 90.48 rupees

Most Asian currencies were steady on Friday, while the Indian rupee dipped to new record lows amid sustained capital outflow pressures and traders also assessed the U.S. central bank’s outlook for next year following its latest rate cut.

The rupee weakened beyond 90 per dollar again, hitting new record lows.

The USDINR pair last traded 0.3% higher at 90.55 rupees, eclipsing its previous day’s record low of 90.48 rupees.

The currency was pressured by persistent foreign portfolio outflows.

The lack of a breakthrough on tariff discussions has kept investors cautious, amplifying pressure on the currency even as the Reserve Bank of India was seen intervening to curb excessive volatility.

The yen’s USD/JPY pair ticked up 0.1%, while the Singapore dollar’s USD/SGD traded flat.

The won’s USD/KRW also added 0.1%, while the yuan’s onshore pair USD/CNY was little changed.

The Australian dollar’s AUD/USD pair dropped 0.1%.

In related news, the US Dollar Index was muted but remained on track for a third straight weekly drop, with investors weighing how many central bank rate cuts may materialize in 2026 after Wednesday’s decision.

The U.S. central bank cut its benchmark rate by 25 basis points on Wednesday, bringing borrowing costs to a near three-year low.

The move came with three dissents, reflecting a widening divide among officials over the pace of future easing. Updated economic projections showed policymakers anticipate just one rate cut in 2026, a more conservative view than markets had expected.

Chair Jerome Powell said the bank would remain data-dependent and highlighted lingering uncertainties around labour market cooling and inflation trends.