Rupee's Record Low: A Currency Under Siege

The Indian rupee hit a record low of 91.99 against the US dollar due to persistent foreign outflows and a tense geopolitical climate. Despite interventions by the Reserve Bank of India, the currency remains volatile. Recent trends underscore the need for a pending US trade agreement to stabilize it.

The rupee faced its deepest plunge yet, dipping to a historic low of 91.99 against the US dollar during Friday's intraday trading. The drubbing came as foreign fund outflows continued unabated amid an unstable geopolitical environment, leaving investors wary and markets tense.

Forex traders attributed some support to the Reserve Bank of India's interventions, which helped temper volatility temporarily. However, these measures have not managed to alter the rupee's overarching downward trajectory. A pending trade agreement with the US is seen as a potential anchor for the currency.

The currency opened at 91.45 per dollar, briefly touched 91.41 but reversed to its nadir at 91.99. On Thursday, the rupee recovered slightly, ending 7 paise up at 91.58. Meanwhile, domestic markets mirrored the currency's plight, with the Sensex and Nifty falling significantly.

(With inputs from agencies.)