Rupee slips past 90 against US dollar, hits record low amid foreign outflows

Mumbai: The Indian rupee breached the 90-per-dollar mark for the first time, closing at a record low of 90.15, down 19 paise from its previous close, as foreign fund outflows and rising crude oil prices weighed on the currency, traders said.

The rupee opened at 89.96 against the US dollar and touched an intraday low of 90.30 before settling at its new all-time low. On Tuesday, it had already hit a record 89.96 amid importer demand and speculative short-covering.

Chief Economic Adviser V Anantha Nageswaran said the government is not concerned about the decline, noting that it has not affected inflation or exports and expressing hope for improvement next year.

Analysts attributed the fall to heavy foreign selling of Indian stocks, global crude oil prices, and uncertainty over the India-US trade deal. Research reports and experts said the Reserve Bank of India’s limited intervention allowed the rupee to slide past 90, while safe-haven flows into the dollar and a recent cryptocurrency crash also increased demand for the greenback.

Market observers expect the rupee to trade under pressure in the near term, with projections ranging between 89.50 and 91.20, depending on crude prices and foreign investor sentiment.

Meanwhile, the Sensex fell 31.46 points to 85,106.81, Nifty declined 46.20 points to 25,986, and Foreign Institutional Investors sold equities worth Rs 3,206.92 crore on Wednesday.