{"id":291,"date":"2025-12-17T11:34:17","date_gmt":"2025-12-17T11:34:17","guid":{"rendered":"https:\/\/todaynewshours.com\/?p=291"},"modified":"2025-12-19T11:34:34","modified_gmt":"2025-12-19T11:34:34","slug":"rupee-hits-record-low-of-91-01-as-trade-deal-worries-and-fpi-selling-mount","status":"publish","type":"post","link":"https:\/\/todaynewshours.com\/?p=291","title":{"rendered":"Rupee Hits Record Low of 91.01 as Trade Deal Worries and FPI Selling Mount"},"content":{"rendered":"\n

The Indian rupee slipped to a new all-time low of 91.01 against the US dollar on Tuesday<\/strong>, pressured by uncertainty over the India\u2013US trade deal, continued foreign investor selling, and a cautious global market mood.<\/p>\n\n\n\n

During the day, the rupee weakened further to an intra-day low of 91.14<\/strong>, marking a fall of 36 paise from the previous close. Although it recovered slightly by the end of the session, the currency still closed 23 paise lower. This slide came despite a sharp drop in global crude oil prices<\/strong>, which usually offers some support to the rupee.<\/p>\n\n\n\n

What\u2019s Driving the Fall?<\/strong><\/h3>\n\n\n\n

Government officials said developments linked to the India\u2013US trade negotiations<\/strong> have weighed heavily on the currency. In Parliament, the government acknowledged that while a weaker rupee increases import costs, it could also help make Indian exports more competitive globally.<\/p>\n\n\n\n

Over the past 10 trading sessions<\/strong>, the rupee has slipped from the 90-per-dollar level to 91. In just the last five sessions, it has fallen by around 1%<\/strong>, reflecting growing pressure from both global and domestic factors.<\/p>\n\n\n\n

\"Rupee<\/figure>\n\n\n\n

Government View: Depreciation Can Help Exports<\/strong><\/h3>\n\n\n\n

According to Minister of State for Finance Pankaj Chaudhary<\/strong>, the rupee\u2019s depreciation this financial year has been driven by a widening trade deficit and uncertainty surrounding trade talks with the US, along with limited support from capital inflows.<\/p>\n\n\n\n

He added that while a weaker currency can support exports, its impact on inflation depends on how much higher global prices are passed on to domestic markets.<\/p>\n\n\n\n

Recent trade data shows some positive signs. India\u2019s exports jumped nearly 19.4% in November<\/strong> to a six-month high of $38.13 billion, led by engineering and electronics goods. Imports declined due to lower purchases of gold, crude oil, coal, and coke, helping narrow the trade deficit to a five-month low of $24.53 billion<\/strong>.<\/p>\n\n\n\n

\"Rupee<\/figure>\n\n\n\n

Not Everyone Is Convinced<\/strong><\/h3>\n\n\n\n

Some experts remain sceptical about the long-term benefits of a weaker rupee. Ajay Srivastava of think tank GTRI<\/strong> pointed out that despite the rupee losing nearly half its value since 2013, export growth has remained modest. He cited issues such as high input tariffs, strict quality norms, supply-chain challenges, and dependence on imported components as key obstacles.<\/p>\n\n\n\n

What\u2019s Next for the Rupee?<\/strong><\/h3>\n\n\n\n

Market participants warn that the currency could weaken further. Anindya Banerjee of Kotak Securities<\/strong> said continued uncertainty around global trade tensions, nearly $2.7 billion in FPI outflows<\/strong> so far this month, and rising US bond yields could push the rupee closer to the 92 level<\/strong>.<\/p>\n\n\n\n

He added that the RBI\u2019s relatively restrained intervention appears intentional. Meanwhile, Axis Bank\u2019s Neelkanth Mishra<\/strong> expects the rupee to see a gradual, controlled decline rather than a sharp fall, noting that heavy intervention last year drained foreign exchange reserves and pushed the currency beyond the 90 mark.<\/p>\n\n\n\n

For now, the rupee remains under pressure, with investors closely watching global trade developments and capital flows for the next cue.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Indian rupee slipped to a new all-time low of 91.01 against the US dollar on Tuesday, pressured by uncertainty over the India\u2013US trade deal, continued foreign investor selling, and a cautious global market mood. During the day, the rupee weakened further to an intra-day low of 91.14, marking a fall of 36 paise from […]<\/p>\n","protected":false},"author":1,"featured_media":292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[8],"tags":[],"class_list":["post-291","post","type-post","status-publish","format-standard","has-post-thumbnail","category-biusinessfinance"],"_links":{"self":[{"href":"https:\/\/todaynewshours.com\/index.php?rest_route=\/wp\/v2\/posts\/291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/todaynewshours.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/todaynewshours.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/todaynewshours.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/todaynewshours.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=291"}],"version-history":[{"count":1,"href":"https:\/\/todaynewshours.com\/index.php?rest_route=\/wp\/v2\/posts\/291\/revisions"}],"predecessor-version":[{"id":295,"href":"https:\/\/todaynewshours.com\/index.php?rest_route=\/wp\/v2\/posts\/291\/revisions\/295"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/todaynewshours.com\/index.php?rest_route=\/wp\/v2\/media\/292"}],"wp:attachment":[{"href":"https:\/\/todaynewshours.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/todaynewshours.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/todaynewshours.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}