New Delhi, December 3 (IANS). There was a sharp decline in the Indian currency rupee on Wednesday’s trading day and for the first time the domestic currency fell to its lowest level beyond 90 against the dollar.
The rupee fell to a new record low of 90.13 against the dollar. Earlier on the trading day, the rupee had made its all-time low by touching the level of 89.94 against the dollar, which has been broken in today’s session.
This fall in the Indian currency is being seen amid weak trade and portfolio flow. At the same time, the increasing uncertainty regarding the trade deal between India and America is also a major reason for this.
These factors kept the currency under continuous pressure in the trading session.
The effect of fall in rupee is also visible on Indian benchmark indices.
The Nifty index is trading below its crucial 26,000 level in Wednesday’s trading session.
Apart from this, Sensex also fell by over 200 points in early trade as weakening rupee increased concerns over inflation and FII activity.
Analysts say traders are eyeing signs of stability in the rupee and clarity on India-US trade talks, due to which the market mood remains tense.
According to analysts, “The rupee’s devaluation will be halted and the situation may even reverse once the India-US trade agreement is signed, which is likely to happen this month itself. However, this will largely depend on the details related to tariffs after the deal between the two countries.”
He said that RBI’s muted intervention has also increased the fall in the rupee. However, with the policy announcement of the RBI MPC meeting on Friday, the market is hopeful that it will also become clear whether the central bank will take steps to stabilize the currency or not.
–IANS
SKT/