The Indian rupee experienced a significant drop, breaching the 91-mark against the US dollar for the first time during intra-day trade on Tuesday. The local currency, weighed down by ongoing Foreign Institutional Investor (FII) outflows and uncertainties concerning the US-India trade deal, marked a notable decline.
The rupee depreciated from 90 a dollar to 91 over the past 10 trading sessions, losing 1 percent in just the last five sessions. As of 11:45 AM, the rupee was trading at 91.14 against the greenback, down by 36 paise from its previous close. Despite a reduction in the trade deficit, recovery remained elusive due to continuous dollar buying.
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FII outflows persisted, with equities worth Rs 1,468.32 crore being sold off on Monday alone, according to exchange data. Meanwhile, wholesale price inflation remained negative for the second consecutive month in November at (-) 0.32 percent. The domestic equity markets also faced declines, with the Sensex and Nifty both dropping significantly in early trade.
