Rupee slips to 90.56 against dollar as fund outflows persist

The rupee fell to a fresh record low on Friday, slipping 24 paise to 90.56 against the US dollar in early trade, as uncertainty surrounding the India–US trade deal and continued foreign fund outflows weighed on investor sentiment.

According to forex traders, the domestic currency has come under sustained pressure due to strong dollar demand from importers, compounded by rising global prices of precious metals. The rupee opened at 90.43 at the interbank foreign exchange market before weakening further to 90.56. On Thursday, it had already hit an all-time closing low of 90.32, after dropping 38 paise.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the currency was likely to move within the 90 to 90.60 band for the day, adding that markets would be closely watching the Reserve Bank of India. “Today marks the final round of discussions between the Indian delegation and visiting US officials, and there is hope for an announcement on a trade deal thereafter,” he noted.

Meanwhile, the dollar index, which measures the greenback’s performance against six major currencies, edged up 0.02 per cent to 98.37.

In commodities, Brent crude futures were trading 0.67 per cent higher at USD 61.69 per barrel.

Domestic equities opened on a positive note, with the Sensex climbing 170.40 points to 84,988.53 and the Nifty advancing 98.40 points to 25,996.95.

Data from the exchanges showed that Foreign Institutional Investors offloaded equities worth Rs 2,020.94 crore on Thursday.

With PTI inputs