Rupee
Rupee tumbles! Hits 89.93 against dollar as foreign investors pull out big money
Mumbai/IBNS: The Indian rupee weakened sharply on Friday, slipping 22 paise to 89.93 against the US dollar in early trade, media reports said.
In the previous session on Wednesday, the domestic currency had erased early gains to settle 16 paise lower at 89.79 against the greenback.
Analysts attribute the rupee’s continued decline to heavy capital outflows by foreign investors, which have kept pressure on the currency.
The weakness is being traced back to April 2025, when US President Donald Trump announced tariffs on Indian goods, raising concerns over exports and the trade balance. The pressure has intensified in December amid a widening current account deficit, analysts said.
Market participants also flagged uncertainty over India–US trade negotiations, rising corporate demand for dollars, and a growing trade deficit as key factors accelerating the rupee’s fall.
Despite intermittent intervention by the Reserve Bank of India (RBI), analysts believe the rupee remains under sustained pressure.
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