Depreciation of rupee in international markets

The Indian rupee continued to weaken sharply in the global currency markets. During Wednesday’s trading session, the rupee slipped past the 90 mark against the US dollar, hitting its lowest level ever. After closing at 89.96 in the previous session, the currency came under pressure right from the opening today. At one point, it touched an all-time low of 90.14 before recovering slightly to trade around 90.12 at 10 AM.

Market analysts say the surge in dollar demand from importers, ongoing short covering, and profit booking by foreign institutional investors are contributing to the rupee’s continued decline. Uncertainty surrounding India–US trade discussions is also weighing on sentiment. If the current trend continues, experts believe the rupee may slip further towards 91 per dollar.

Indian equity markets are also trading in the red. By 10.30 AM, the Sensex had fallen 241 points to 84,897, while the Nifty was down 103 points at 25,928. Meanwhile, the RBI’s bi-monthly monetary policy review begins today, with the central bank expected to announce its stance on interest rates on December 5. There is growing speculation that the RBI may consider a rate cut.