Rupee breaches 90-mark for first time: Currency hits all-time low of 90.21 against dollar; FIIs outflow and crude weigh on sentiment

The rupee plunged to a historic low on Wednesday, slipping past the 90-per-dollar threshold for the first time amid foreign fund outflows, firm crude oil prices and uncertainty around the India–US trade deal, according to PTI. The lack of visible RBI intervention through most of the session added to market pressure, forex traders said.At the interbank foreign exchange, the currency opened at 89.96 and fell to a fresh intraday low of 90.30 before settling at 90.21 (provisional), down 25 paise from its previous close. On Tuesday, the rupee had ended 43 paise lower at 89.96, hit by sustained importer demand and speculative short covering.

“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,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, PTI quoted him as saying.Also Read: Rs 90 to a dollar: What’s driving the fall and why it matters to you – explainedHe added that the currency may continue to trade with a “slight negative bias” on persistent FII outflows and higher crude prices, though expectations of a US Federal Reserve rate cut in December could lend some support. Choudhary expects the USD-INR spot range to remain between Rs 89.80 and Rs 90.50.“The rupee was easily allowed by the RBI to cross 90, and it even fell to 90.30 before the RBI stepped in,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.Macro indicators were mixed. The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 59.8 in November from 58.9 in October, supported by new business growth.The dollar index was down 0.20% at 99.16, while Brent crude futures traded 0.91% lower at USD 63.02 per barrel.Equity benchmarks were subdued, with the Sensex slipping 31.46 points to 85,106.81 and the Nifty falling 46.20 points to 25,986. Foreign Institutional Investors sold equities worth Rs 3,642.30 crore on Tuesday, exchange data showed.