Rupee Hits New Low Amidst Trade Tensions with US

The Indian rupee has reached a new record low of 91.14 against the US dollar, influenced by a widening trade gap and developments in the India-US trade deal. Experts predict the currency may further depreciate. The RBI continues to monitor market volatility but has yet to intervene significantly.

The Indian rupee slumped to an unprecedented low, breaking past the 91-a-dollar threshold, as concerns rise over an expanding trade deficit and new twists in the India-US trade discussions.

Minister of State for Finance Pankaj Chaudhary attributed the depreciation to both the increasing trade deficit and recent developments in trade talks with the US. Meanwhile, analysts forecast the rupee could weaken further, potentially hitting 92 per dollar in the coming days.

The Reserve Bank of India (RBI) remains vigilant, monitoring international market trends and volatility, although direct intervention in the forex market has been limited thus far. The impact of the rupee's devaluation on the economy is mixed, enhancing export competitiveness but raising import costs.

(With inputs from agencies.)