Rupee Hits All-Time Low Amidst Market Volatility

The Indian rupee plummeted to a record low of 89.79 against the US dollar due to negative domestic equity trends, persistent foreign fund outflows, a strong dollar, and rising crude oil prices. Despite ongoing trade negotiations with the US, heavy foreign portfolio investments outflows continue to exert pressure on the currency.

The Indian rupee suffered a significant blow today, depreciating by 34 paise to reach a historic low of 89.79 against the US dollar in intraday trading. The depreciation is attributed to a prevailing downward trend in domestic equities combined with steady foreign fund outflows, experts report.

Forex traders highlighted that the robust performance of the US dollar and an upswing in international crude oil prices have added weight to the rupee's decline. Additionally, substantial dollar demand from importers contributed to the persistent downward pressure on the local currency.

Commerce Secretary Rajesh Agrawal remained optimistic about a possible trade deal resolution with the US that could address tariff concerns. However, high valuations and an array of factors continue to drive foreign institutional investors to offload equities, leading to further strain on the rupee.