Rupee hits all-time low, breaches 90 per $ mark

The rupee breached the 90-a-dollar level for the first time to settle at a fresh all-time low of 90.21 (provisional) on Wednesday, down 25 paise from its previous close, amid sustained foreign fund outflows and higher crude oil prices.

Uncertainty over the India-US trade deal, along with the lack of RBI effort to stop the slide, put further pressure on the rupee, according to forex traders. The rupee opened at 89.96 against the US dollar and fell to a record intraday low of 90.30 before closing at an all-time low of 90.21 (provisional).

On Tuesday, the rupee settled 43 paise down at a lifetime low of 89.96 against the US dollar, largely owing to continued short-covering from speculators and sustained importer demand for the American currency.

“The rupee hit a fresh all-time low of 90.30 amid selling pressure from foreign investors and a surge in crude oil prices. Uncertainty over the announcement of India-US trade deal has also weighed on the rupee. However, a weak US dollar index prevented a sharp fall,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.