By: The Trek News Desk
The Indian rupee continued its downward trajectory on Thursday, touching a fresh record low of 90.43 per US dollar during early trade. Persistent delays in the India–US trade agreement and uninterrupted selling by foreign portfolio investors (FPIs) weighed heavily on market sentiment.
Weak Opening Followed by a Sharp Drop
The currency opened at 99.36, slipping 17 paise from the previous close of 99.19. Soon after trading began, the rupee tumbled sharply and hit its new all-time low of 90.43 per dollar.
Analysts note that the USD/INR pair continues to move within a strong upward trend channel. According to market experts, a steady move above the 90.30–90.40 zone could push the pair toward 90.50–91.00, while failure to break this upper band may trigger a brief corrective pullback.
FPI Outflows Intensify Pressure
Foreign portfolio investors have offloaded ₹1.52 lakh crore worth of Indian equities so far this year. In just the first three days of December, they pulled out another ₹8,369 crore.
Analysts believe this continuous capital flight is a major driver behind the rupee’s decline.
CR Forex Managing Director Amit Pabari notes, “A weakening currency rarely attracts global investors. When outflows rise, confidence falls, and the exchange rate reacts immediately.”
Technical Levels to Watch
According to Dipti Chitale, CEO of Mecklai Financial Services, the key technical markers for the rupee are:
- Immediate Support: 89.20
- Deeper Support: 88.60
- Upper Resistance: 90.30–90.40
Chitale says a sustained move above 90.30 may open doors toward 90.50 and 91.00.
Pabari, meanwhile, believes the speed of Thursday’s fall suggests that the pressure is far from over, and the pair could drift into the 90.70–91.00 band next.
Government Signals Calm
Chief Economic Advisor V. Anantha Nageswaran maintained that he is not worried about the rupee’s current slide. He noted that the weakness is neither adding to inflation nor hurting exports at the moment. Nageswaran also expressed confidence that the rupee may regain strength next year.
All eyes are now on RBI Governor Sanjay Malhotra, who will address the markets on Friday. His remarks on the currency are expected to signal the central bank’s stance ahead.
What Lies Ahead
The rupee’s continued weakness is being shaped by both domestic and global factors. In the coming sessions, the market will closely track RBI commentary, FPI flows, and global economic cues to determine whether the currency stabilises, or enters a fresh leg of decline.
Source: News Agencies
