The Indian rupee faced significant pressure on Friday, September 19, 2025, as Asian currencies continued to weaken in the wake of a stronger U.S. dollar and rising Treasury yields. The rupee hit an intraday low of 88.32 against the dollar, dangerously close to its all-time low of 88.4550 recorded the previous week. By the end of the trading session, the currency was quoted at 88.30, reflecting persistent downward momentum. A currency trader at a private sector bank described the rupee’s trajectory as a ‘whippy down move,’ noting that the currency had briefly shown signs of recovery earlier in the week before succumbing to renewed pressure. The rupee had climbed past the 88 mark on Wednesday, sparking optimism among interbank traders that the worst might be over. However, this sentiment was short-lived, as the Federal Reserve’s recent decision to cut rates—coupled with Chair Jerome Powell’s hawkish press conference—reignited the dollar’s strength and weighed heavily on emerging market currencies. The Korean won and Indonesian rupiah also fell by 0.5% each, mirroring the broader regional trend. The dollar index, which had dipped to 96.22 on Wednesday, rebounded to 97.46, supported by positive U.S. jobless claims data showing a decline in new unemployment applications. Analysts attributed the dollar’s resurgence to a combination of the Fed’s mixed signals and robust economic indicators, leaving the rupee and its Asian counterparts vulnerable to further losses.