The Indian rupee hit a new record low of 90.56 against the dollar on Friday, pressured by uncertainty over a trade deal and fears of foreign investor outflows.
डॉलर के मुकाबले रुपया फिर रिकॉर्ड निचले स्तर, 90.56 पर लुढ़का
The rupee reached a new historic low against the US dollar on Friday. Experts believe that the rapidly changing global environment, the delay in India-US trade talks, and fears of a potential outflow of foreign investment all put such pressure on the rupee that it surpassed its previous record.
How much did the rupee fall?
On Friday morning, the rupee touched 90.56 per dollar. This is its lowest level ever. Previously, on December 11, the rupee had fallen to 90.46 per dollar, which was also a historic low. New data shows that the rupee remains trapped in the grip of global uncertainties.
What were the main reasons behind the decline? Delay in the India-US trade agreement
For several weeks, investors had been hoping for positive signs on a trade agreement between the two countries. However, the lack of concrete progress in the talks weakened market confidence. This uncertainty further weakened the rupee’s position.
Fears of Portfolio Investor Outflows
Foreign portfolio investors (FPIs) often shift their investment strategies based on global cues and the interest rate environment. Recent reports of potential outflows have pressured the rupee.
Investors have turned to safe havens, increasing demand for the dollar and weakening the rupee.
Risk aversion in global markets
Markets across the world are currently experiencing a risk aversion. In such a situation, investors are choosing safe havens like the dollar over emerging economies. This trend has directly impacted the rupee.
What does the rupee’s weakness mean?
The rupee’s continued decline against the dollar impacts many sectors.
Imports become more expensive, especially crude oil, electronics, and machinery.
Studying abroad and traveling also become more expensive.
Could further pressure be seen?
Experts believe that until clear signals emerge on the India-US trade agreement and FPI sentiment stabilizes, the rupee remains vulnerable to weakness. However, in the long term, the situation may improve with stable policies and strong economic indicators.
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