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2025-12-16 15:38:36
[Indian Rupee Falls Below 91] ⑴ The Indian rupee weakened further on Tuesday, falling below 91 rupees to the US dollar, marking its fourth consecutive day of record lows. ⑵ The rupee's pressure stems primarily from hedging activities and continued foreign capital outflows amid stalled India-US trade negotiations. ⑶ The rupee has depreciated by more than 6% this year, becoming one of the worst-performing emerging market currencies, mainly due to the pressure exerted on trade and investment flows by high US tariffs. ⑷ Overseas investors have already sold over $18 billion in domestic stocks by 2025, heading towards the largest annual capital outflow on record. ⑸ Although state-owned banks intervened by selling dollars to alleviate pressure from maturing non-deliverable forward positions, analysts believe the rupee is unlikely to recover unless trade negotiations make progress. ⑹ India's trade minister said on Monday that the country is engaging with the US in hopes of reaching an agreement "as soon as possible." ⑺ Meanwhile, a rebound in exports in November eased some pressure, with increased shipments to the US narrowing the trade deficit to a five-month low.
