New Delhi— The Indian Rupee continued its downward slide on Tuesday, touching a new all-time low and moving dangerously close to the 90-per-dollar level. At the time this report was filed, the Rupee was trading at 89.874 against the US dollar, after briefly hitting a session high of 89.895, according to publicly available market data.
The currency has weakened by more than 4 percent so far this year. Analysts attribute the fall primarily to a stronger dollar and delays in the first tranche of the India-US bilateral trade agreement. According to Prithvi Finmart, October’s record trade deficit and uncertainty over the trade deal exerted additional pressure on the Rupee.
However, the brokerage noted that India’s stronger-than-expected GDP figures and possible profit-booking in the US dollar index could provide some support at lower levels. It expects the currency to remain volatile this week, driven by fluctuations in global equity markets, dollar index movements, and anticipation ahead of the US Federal Reserve’s upcoming policy meeting. The firm projects the USD/INR pair to trade between 88.55 and 90.60.
The Rupee has already fallen 0.8 percent in November alone. A Bank of Baroda report by economist Aditi Gupta said the depreciation was sharper because it occurred during a period when the dollar itself weakened. She cited strong importer demand, low foreign inflows, uncertainty surrounding the US-India trade deal, and a widened trade deficit as key reasons behind the slide. Gupta expects the Rupee to remain under pressure in the near term, with any major movement hinging on developments related to the trade agreement.
The Bank of Baroda report estimates the USD/INR range for the month at 89–90 per dollar. In contrast, Union Bank of India asserted in a recent analysis that the currency may not weaken much further, arguing that the roughly 4 percent depreciation already factored in this year reduces the likelihood of a deeper slide soon.
Meanwhile, gold and silver prices surged to fresh lifetime highs. Silver futures crossed ₹1,80,000 per kilogram, while gold futures on MCX breached the ₹1,30,000 mark before witnessing mild profit-taking. Prithvi Finmart noted that expectations of a US Fed rate cut, safe-haven buying, and softness in the dollar index boosted precious metal prices. The firm expects both gold and silver to remain volatile this week, projecting gold to trade between $4,140 and $4,380 per troy ounce and silver between $53.50 and $60.00.
