Rupee Hits Record Low Amid India-US Trade Deal Hopes

The rupee sank to an all-time low of 90.48 against the US dollar due to anticipated India-US trade deal by March 2026, combined with strong US dollar demand and investor sentiments. Forex traders noted the significant drop amid trade discussions, tariffs from Mexico, and rising yields in the US and Japan.

The Indian rupee plunged to a record low on Thursday at 90.48 against the US dollar, driven by the rising anticipation of a trade deal between India and the US by March 2026. This decline was exacerbated by strong demand for US dollars from importers and an overall risk-averse market sentiment.

The rupee opened weaker at 89.95 at the interbank foreign exchange before dropping significantly, marking a 54-paise decline from the previous day's close of 89.87, as Chief Economic Advisor V Anantha Nageswaran cautioned about the upcoming trade agreement.

Meanwhile, tensions were compounded by Mexico's announcement to impose tariffs on Asian countries, potential foreign investor withdrawal, and rising global yields. The US Trade Representative cited promising offers from India amidst ongoing bilateral talks, while global market indicators like the dollar index and Brent crude also displayed fluctuations.