Forex Market Update: Rupee Settles at ₹90.32

Mumbai: The Indian currency slipped to a record lifetime low against the dollar. In the forex market, the rupee fell by 54 paise at one point on Thursday, hitting an all-time intraday low of ₹90.48. Although it recovered slightly, it settled at ₹90.32 with a loss of 38 paise by the end of the day, marking a new record closing low.

Reasons: The delay in a trade agreement between the US and India is a major factor. In an interview with Bloomberg TV, Chief Economic Advisor Anantha Nageswaran said that it might take until March for a trade deal between the two countries to be finalized. His comments added further pressure on the currency. Continuous withdrawal of investments by foreign institutional investors from the Indian equity market, along with the imposition of tariffs by Mexico on Indian goods, also pushed the rupee lower. However, a slight weakening of the dollar due to Fed rate cuts, declining crude oil prices, and gains in the domestic equity market provided some support to the rupee.

Further Pressure on the Rupee: Forex market sources indicated that the domestic currency may continue to face pressure in the near term. Anuj Chaudhary, research analyst at Mirae Asset, said the USD-INR exchange rate could move within a range of ₹90.10–90.75. Forex analysts added that if a trade agreement with the US is not finalized, the rupee-dollar rate could reach ₹92.