New Delhi, Dec 4: The Indian rupee plunged 28 paise to a record 90.43 against the US dollar on Thursday, continuing its downward trend amid heavy FII outflows and restrained intervention from the Reserve Bank of India ahead of its upcoming policy announcement.
The local currency opened at 90.36 in early trade and slipped further, following Wednesday’s historic breach of the 90 mark when it closed at 90.15.
“Until the trade deal is signed, we may see further rupee weakness, possibly towards 91.00,” said Anil Kumar Bhansali of Finrex Treasury Advisors LLP. “A weak rupee also makes rate cuts from the RBI unlikely this Friday.”
Chief Economic Adviser V Anantha Nageswaran said falling currency levels are not impacting inflation or exports. “While a weaker rupee benefits outward shipments, it raises costs for import-dependent sectors such as gems and jewellery, petroleum, and electronics, which may feed into inflationary expectations,” he said.
The dollar index rose 0.14% to 98.99, and Brent crude climbed 0.49% to USD 62.98 per barrel. Traders remain wary amid unresolved US trade tensions.
“The currency market now seeks stability and clear guidance, not just growth headlines,” said Amit Pabari, MD of CR Forex Advisors. “All eyes are on RBI Governor Sanjay Malhotra’s address on December 5, where investors hope for reassurance on the rupee.”
Meanwhile, domestic equity markets showed modest gains. The Sensex added 45.99 points to 85,152.80, while the Nifty rose 14.35 points to 26,000.35. FIIs offloaded Rs 3,206.92 crore worth of shares on Wednesday.
