Rupee breaches 90 mark for first time, falls for sixth straight session
The Indian rupee breached the 90 mark in opposition to the US greenback for the primary time in early offers on Wednesday, slipping 28 paise to a recent file low of 90.14 from the earlier shut of 89.86. On Tuesday, rupee fell to a low of Rs 89.92 in opposition to the US greenback. That is the sixth straight session of fall for the Indian foreign money amid excessive demand for greenback and a delay within the India-US commerce deal.
On the present weak spot in rupee, VK Vijayakumar, Chief Funding Strategist, Geojit Investments mentioned, “The rupee depreciation will halt and even reverse when the India-US commerce deal materialises. That is doubtless this month. So much, nonetheless, will depend upon the main points of the tariffs to be imposed on India as a part of the deal.”
The Indian foreign money has been affected as expectations of a US Federal Reserve charge lower put up higher than anticipated jobs stories have fallen. A surge in greenback demand from importers and restricted provide from exporters have introduced the Indian foreign money underneath stress.
Since late August, when the US imposed steep tariffs on Indian exports, overseas traders have withdrawn $16.5 billion from Indian equities, positioning the rupee because the weakest Asian currencies in 2025. The Indian rupee has fallen 5.17% in opposition to the US greenback in 2025.
Jateen Trivedi, VP Analysis Analyst – Commodity and Foreign money, LKP Securities mentioned,” Rupee was pressured by the absence of a confirmed India–US commerce deal and repeated delays in timelines. Markets now need concrete numbers fairly than broad assurances, resulting in accelerated promoting within the rupee over the previous few weeks. Muted RBI intervention has additionally contributed to the swift depreciation. With the RBI coverage announcement on Friday, markets count on readability on whether or not the central financial institution will step in to stabilise the foreign money. Technically, the rupee is deeply oversold, and a transfer again above 89.80 is important for any significant restoration.”
