Indian rupee closed at a historic low of 89.87 versus the US dollar, continuing its losing trend. The stalled India–US trade pact and continued FPI outflows from equities have added to the negative pressure on the currency.
The rupee plummeted for the fifth straight day, setting a fresh low of 89.95 per dollar, down 0.45% from Monday’s finish of 89.54. The currency temporarily hit the 90-per-dollar mark in the inter-bank order matching mechanism before recovering some losses. The rupee may decline much more, according to analysts cited by Reuters, but further RBI intervention is anticipated to help reduce volatility.
The downward trend in the rupee continues. It has slid further lower, past its previous all-time low of 89.75/$. It has hit 89.85/$ levels in early trade after opening at 89.76/$, dropping past its Monday lows.
The 90 level is a huge psychological barrier — and a cluster of buy-stop orders presumably sits above it. This is precisely why the RBI must remain active below 90; if the pair starts sustaining above this zone, the market might swiftly transition into a higher trending phase into 91.00 or even higher
The currency’s immediate obstacle is still the psychologically significant 90-per-dollar level. Despite solid GDP growth, economists predict the rupee may eventually exceed the 91 threshold.
In addition, some economists anticipate a 25-basis rate cut by the central bank due to low inflation, while others anticipate no change given the robust GDP growth rate and the declining value of the Indian currency. The market now awaits the RBI’s MPC meeting, which is scheduled for December 3-5, which is expected to provide a clearer stance on the rupee’s future trajectory.
