By Ira Deshpande
The Indian rupee weakened further on Tuesday, slipping by 8 paise. It closed at a fresh record low of ₹88.18 against the US dollar. The day began with the rupee at ₹88.14. It dropped further to an intraday low of ₹88.20. Eventually, it settled near ₹88.18. Traders noted a risky mood in the market. The uncertainty around the India–US trade deal weighed on sentiment. Weak domestic equity markets also add pressure to the situation. Persistent foreign fund outflows contribute further.
Analysts see little relief ahead, Anuj Choudhary of Mirae Asset ShareKhan said the outlook remains cynical. He added that crude oil price trends and investor outflows could weaken the rupee further. The US dollar also strengthened broadly. The dollar index, which measures the greenback against global currencies, gained about 0.63 percent, reaching around 98.38.
Meanwhile, trade talks between India and the US remain stalled. India is negotiating a bilateral trade agreement. But a planned US team visit has been postponed indefinitely. No new date has been set yet. The US had imposed a 50 percent duty on Indian goods from August 27. This move strained the talks further.
In summary, markets are jittery amid trade tensions. Weak Indian equities and foreign outflows add to the pressure. A stronger dollar also doesn’t help, and unresolved negotiations with the US add uncertainty. All these factors could push the rupee lower in the coming days, predict experts. This marks the weakest level ever for the Indian currency, highlighting the pressure it has faced in recent weeks. However, on tensions between the USA and India, USA Treasury Secretary Scott Bessent said that at the end of the day, the two great countries will get this solved.