Rupee hits record low; crosses 90 against dollar

 

 

P P Cherian

New York: The Indian rupee has hit its lowest level in history, breaking the critical level of 90 against the US dollar for the first time. The trade deficit and foreign capital outflows are the main reasons for this decline.

New low: The rupee hit a record low of 90.29 against the dollar on Wednesday.

US tariffs: The US has imposed tariffs of up to 50% on Indian products, which has severely affected exports.

Foreign portfolio investors (FPIs) have pulled out about $17 billion from the Indian stock market this year.

Trade deficit: The country's trade deficit has reached a record high due to high imports and tariffs.

Asia's weakest: The rupee, which has depreciated more than 5% against the dollar this year, has become one of the worst-performing currencies in Asia.

RBI Position: Despite the frequent intervention of the Reserve Bank, the increased demand for dollars is causing pressure on the rupee to continue.