Overview
- The rupee touched 90.80 intraday before a provisional 90.74 close, setting a second consecutive record low.
- Market participants point to stalled India–US negotiations and combined U.S. tariffs near 50% on Indian goods as major headwinds.
- Foreign portfolio investors have withdrawn about $17–18 billion from equities this year as importer dollar demand remains firm.
- The RBI has been selling dollars at times to curb sharp moves but is allowing a gradual adjustment, supported by roughly $687 billion in reserves.
- Commerce Secretary Rajesh Agrawal said a framework deal with Washington is "very close" without a timeline, while strategists warn of potential tests of 91–92 unless inflows improve.