The Indian rupee has plunged to a historic low of 90.13 against the US dollar, surpassing its previous record of 89.9475 set just a day earlier. This fall has intensified pressure on the financial markets and dampened investor sentiment, primarily due to ongoing uncertainty regarding the India-US trade deal. The decline in the rupee is attributed to sluggish trade and portfolio flows, which contributed to sustained pressure on the currency throughout the trading session.
As the rupee depreciated sharply, domestic stock indices also felt the impact, with the Nifty falling below the 26,000 mark as investors grew wary. The Sensex experienced a nearly 200-point drop in early trading, reflecting anxieties about inflation and the activities of foreign investors tied to the weakening rupee. Market analysts are closely observing for signs of stabilization in the currency and any clarity in the trade negotiations between India and the United States. They suggest that if a trade deal is finalized, which is anticipated this month, the rupee’s decline could potentially stabilize or even reverse, contingent on the specifics of the tariffs involved.
The stock market opened with relatively insignificant fluctuations, as both benchmark indices experienced little movement. The Sensex edged up by 12 points to 85,151, while the Nifty decreased by 18 points to 26,014. At the opening, shares of several prominent companies, including HUL, Titan, and Tata Motors, ranked among the top losers of the day. Analysts have expressed that a major concern contributing to the market’s sluggish pace is the continued depreciation of the rupee, exacerbated by fears of ongoing declines, especially since the Reserve Bank of India has not intervened to stabilize the currency.
Original Source: https://www.firstpost.com/india/rupee-falls-to-all-time-low-of-90-13-amid-growing-uncertainty-over-india-us-trade-deal-ws-e-13956167.html
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Publish Date: 2025-12-03 11:25:00
