New Delhi: The Indian rupee plunged past the 90-per-dollar mark on Wednesday for the first time, settling at 90.13, breaking the previous record low of 89.9475 reached just a day earlier.
The sharp depreciation came amid weak trade and portfolio inflows and mounting uncertainty over the India-US trade deal, which kept the currency under persistent pressure throughout the trading session.
The fall in the rupee also impacted domestic equity markets. The Nifty index slipped below 26,000, while the Sensex dropped nearly 200 points in early trade, reflecting investor caution over potential inflation and foreign investment outflows.
Analysts noted that the rupee could stabilize once the India-US trade agreement materializes, expected later this month. “Much will depend on the specifics of tariffs and trade conditions imposed on India,” they said.
The stock market opened cautiously, with the Sensex inching up 12 points to 85,151 and the Nifty falling 18 points to 26,014. Key losers in early trade included HUL, Titan, Tata Motors PV, NTPC, BEL, Trent, Bajaj Finserv, Kotak Bank, Ultratech Cement, Maruti Suzuki, L&T, Power Grid, and ITC.
Analysts warned that the continued rupee depreciation and the lack of intervention by the RBI are prompting foreign investors to sell, despite improving corporate earnings and GDP growth.
