Indian Rupee Falls Below 90 vs US Dollar for First Time

The Indian rupee fell below the key psychological level of 90 against the US dollar for the first time on Wednesday, reaching a record low of 90.19 in early trading before settling at 90.02, down 6 paise from the previous close of 89.96. The currency's decline, which has persisted for six straight sessions, reflects ongoing pressures from foreign investor outflows, stalled trade negotiations with the United States, and heightened demand for dollars amid economic uncertainties.

Traders attributed the sharp drop to a combination of factors weighing on India's external finances. Steep US tariffs of up to 50 percent on Indian goods have curtailed exports to the country's largest market, contributing to a widened merchandise trade deficit that hit an all-time high in October. This has been exacerbated by a surge in gold imports and reduced dollar inflows from overseas borrowings and non-resident Indian deposits. Foreign institutional investors have net sold nearly $17 billion in Indian equities so far this year, marking one of the heaviest outflows globally and positioning the rupee as one of Asia's weakest performers with a 5 percent year-to-date decline.