The Indian rupee plunged sharply on Wednesday, breaching the crucial 90-per-dollar mark for the first time ever. The currency hit a new all-time low of 90.17 against the US dollar, surpassing Tuesday’s previous record of 89.9475.
The steep decline was driven by weak trade and portfolio flows and growing uncertainty surrounding the India–US trade deal, keeping sustained pressure on the rupee throughout the session.
The currency’s fall also impacted domestic equity markets. The Nifty slipped below the 26,000 level, signalling cautious investor sentiment. The Sensex dropped nearly 200 points in early trade amid concerns over inflation and potential reduced participation from foreign investors.
Analysts reported that market sentiment remains tense as traders await signs of stability in the rupee and clarity on ongoing trade negotiations.
According to experts, rupee depreciation may stabilise or reverse once the India–US trade agreement is finalised, which is expected later this month. However, the outcome will largely depend on tariff details included in the deal.
Despite the volatility, domestic markets showed subdued movement at opening. The Sensex inched up by 12 points to 85,151, while the Nifty slipped 18 points to 26,014.
Major stocks such as HUL, Titan, Tata Motors PV, NTPC, BEL, Trent, Bajaj Finserv, Kotak Bank, Ultratech Cement, Maruti Suzuki, L&T, Power Grid, and ITC were among the top losers during the morning session.
Analysts highlighted that the continued depreciation of the rupee, coupled with the RBI’s decision not to intervene, has become a major concern. This has prompted FIIs to continue selling, despite strong corporate earnings and a robust rebound in GDP growth.
