Rupee Dips to 91 Against Dollar on Trade-Deal Uncertainty
Rupee Dips to 91 Against Dollar on Trade-Deal Uncertainty
Rupee breaches the 91-mark intraday as outflows and ongoing India-US trade-talk ambiguity weigh on the currency.
The Indian rupee breached the 91-per-dollar mark in intraday trading, continuing a slide that has stretched across about 10 sessions. It briefly traded around 91.14 per dollar around mid-session after opening near 90.87, before drifting lower as risk-off sentiment and dollar demand from importers kept pressure on the currency.
By the session's close, the rupee was hovering in the 90.70s, with traders noting fresh all-time lows around 90.74 against the U.S. dollar. Other market trackers showed the currency touching new lows at different points in the day, reflecting the broader pull on Indian assets.
The pull on the rupee is being attributed to persistent foreign institutional investor outflows and a lack of clarity around the India-US trade framework. Analysts warn that without a concrete accord, the greenback could stay bid and the rupee could drift toward the 90-per-dollar mark.
Officials have signaled progress, with Commerce Secretary saying India and the U.S. are very close on a framework deal, though no deadlines have been set to avoid rushed decisions. That mixed message has done little to steady sentiment in the near term.
Supportive macro data, like a negative Wholesale Price Index reading, came too late to help the currency, while overall risk appetite remained fragile. Market watchers will be watching for any fresh clues on the trade talks as FIIs continue to pull funds from Indian equities.
