The Indian rupee fell to a new record low on Monday against the US dollar as uncertainty continues to surround a India-US trade deal and persistent foreign fund outflows.
The rupee fell to 90.72 against the US dollar in intraday trade, after opening at 90.53. The rupee had dropped to close at an all-time low of 90.49 against the dollar on Friday. The dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.05% at 98.35.
According to forex traders, the rupee is trading under pressure as investors remain cautious and are adopting a wait-and-watch approach, looking for signals on the India-US trade deal.
According to exchange data, foreign institutional investors sold equities worth ₹1,114.22 crore on Friday.
“FPIs continue to be in selling mode in equity and debt, while RBI has been selling dollars to fund their long positions,” Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, told PTI.
The rupee is heading towards its sharpest yearly fall since 2022, dragged by multiple external factors, including uneven foreign portfolio flows and 50% US on Indian exports, according to a previous HT report. Analysts warn that failure to secure a trade deal with Washington could push the rupee to further losses in the coming months.
