The rupee on Tuesday depreciated to another record low, by 23 paise against the US dollar, reaching 91.01 (provisional). This decline was attributed to continuous foreign fund outflows, stalled India-US trade negotiations, and sustained US dollar purchases.The domestic currency initially dropped 36 paise to touch 91.14, its lowest point ever, before recovering slightly. Despite the US dollar’s weakness and significant reductions in global oil prices, the rupee continued its downward trend, according to currency traders.Over the past 10 trading sessions, the rupee has moved from 90 to 91 against the dollar. The currency has declined by 1 per cent versus the US dollar in just five sessions.Currency traders suggest that the rupee could potentially exceed 92 against the dollar this month.In interbank foreign exchange trading, the rupee began at 90.87 and fluctuated between 90.76 and 91.14 before closing at 91.01 (provisional), showing a 23 paise decline from its previous close.The domestic currency had closed at 90.78 against the US dollar on Monday, recording a 29 paise decrease from its earlier close. “Rupee made a new lifetime low as dollar buying continued with news that (US President) Donald Trump has not agreed to the new trade proposals from India. So the deal goes into limbo till a new one is finalized,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, as quoted by PTI.“FPIs will continue to sell while speculators will continue to take USD/INR up in the absence of RBI intervention… 92 looks imminent unless RBI has other ideas or a deal is finalized,” he added, forecasting tomorrow’s range between 90.75 and 91.25.According to exchange data, foreign institutional investors divested equities worth Rs 1,468.32 crore on Monday.
