VOI World/ Desk
Mumbai: The Indian rupee slipped further on Tuesday, nearing the 90-per-dollar mark as sustained weakness in trade flows and heavy dollar demand pushed the currency into its fifth straight day of decline. The rupee touched 89.95 during the session before closing at 89.87, down 0.4 per cent, with traders reporting multiple bilateral trades executed at 90 after market close.
The slide comes amid the absence of progress on a new India-US trade arrangement, which has dampened inflows and affected portfolio sentiment. Market data also pointed to softer nominal growth in the September quarter, while pressures on the current account and capital flows remain unbalanced.
Analysts say India’s strong headline GDP figures may not fully reflect underlying economic strain. Heavy dollar buying by importers and muted interest from exporters have further widened the mismatch, putting additional pressure on the rupee. The uneven demand has lifted forward premiums, with the one-month premium rising over 19 paise and the one-year implied yield touching 2.33 per cent.
Despite the Reserve Bank of India’s attempts to stabilise volatility, traders believe near-term weakness may persist, especially with global investors waiting for clarity on a possible US rate cut in December. Compared with other Asian currencies, the rupee has been one of the weakest performers this year, down about 4.8 per cent.
While the currency has not yet formally breached the 90 level, analysts say it has already surpassed earlier resistance zones and could continue trading close to that band unless inflows improve and global financial conditions ease.
