Rupee vs Dollar: The rupee weakened to a low of 90.15 per US dollar, eclipsing its previous all-time low of 89.9475 hit on Tuesday.
The rupee declined 27 paise and breached the psychological 90-a-dollar level and hit an all-time low of 90.15 against the US dollar in early trade on Wednesday, as worries over a missing trade deal with Washington kept the currency under pressure. The rupee opened at 89.91 against the dollar and weakened to a low of 90.15 soon after, eclipsing its previous all-time low of 89.9475 hit on Tuesday. It ended the previous session at 89.88. However, it recovered some ground to trade at 90.09, down six paise from its previous close.ย
Why is Indian Rupee falling?
Rupee is below 90-mark for the first time amid uncertainty over IndiaโUS trade deal and repeated delays in timelines. According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, record-high metal and bullion prices have further worsened Indiaโs import bill. At the same time, steep US tariffs continue to strain export competitiveness.ย ย This has kept weakened sentiment across equities compared to global markets and import-heavy sectors such as mineral fuels, machinery, electrical equipment, and gemstones.
According to experts, muted RBI intervention has also contributed to the swift depreciation.ย
“With the RBI policy announcement on Friday, markets expect clarity on whether the central bank will step in to stabilise the currency. Technically, the rupee is deeply oversold, and a move back above 89.80 is essential for any meaningful recovery,” Trivedi added.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, feel that the rupee depreciation will halt and even reverse when the India-US trade deal materialises. However, a lot will depend on the details of the tariffs to be imposed on India as part of the deal.ย
Meanwhile, benchmark indices fell for the fourth day in a row on Wednesday. The 30-share BSE Sensex dropped 165.35 points to 84,972.92 in early trade. The 50-share NSE Nifty declined 77.85 points to 25,954.35.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)