The Indian rupee weakened further on Wednesday, slipping past the crucial ₹90-per-dollar mark for the first time. The currency opened lower and extended losses as persistent foreign fund outflows, strong demand for the US dollar, and uncertainty around India’s pending trade discussions pressured market sentiment.
Traders reported steady dollar buying from importers, especially in sectors like gold and electronics, which has added to the strain on the rupee. With India’s import bill rising, the demand for dollars continues to stay elevated even as global currency markets remain volatile.
Foreign investors have been pulling money out of Indian equities and bonds over the past few weeks, adding to the downward pressure. Many are staying cautious due to geopolitical tensions and concerns over global interest rate trends. This steady outflow has reduced dollar supply in domestic markets at a time when demand is already high.
Market participants also pointed to the lack of progress on the ongoing India–US trade discussions as another factor weighing on sentiment. With no clarity on when the deal might move forward, traders expect the rupee to remain under pressure in the near term.
Despite India’s strong macroeconomic backdrop, analysts say the rupee could weaken further if foreign inflows do not stabilise soon. Some expect the currency to hover near or slightly above the current levels unless global conditions improve or trade negotiations break the deadlock.
For now, the Reserve Bank of India is expected to step in when required to prevent excessive volatility, but traders believe the central bank will avoid aggressive intervention unless the rupee shows sharper swings. Overall, the mood in currency markets remains cautious as investors wait for clearer signals on trade and global risk trends.
Also Read: Gold hits ₹1.30 lakh mark, Silver climbs to ₹1.84 lakh