New Delhi — The Indian rupee plummeted 54 paise to an all-time low of 90.48 against the US dollar in intra-day trade on Thursday, dragged down by fresh uncertainty over the India-US trade agreement and mounting global market pressures. The currency slipped sharply after reports emerged that the proposed trade deal may only be finalised by March 2026, a timeline reportedly indicated by Chief Economic Advisor V. Anantha Nageswaran.
Forex traders said the rupee’s decline was driven by heightened risk aversion, strong dollar demand from importers and a broad sell-off triggered by global cues. The currency, which opened at 89.95 at the interbank foreign exchange market, quickly weakened to its historic low of 90.48, marking a significant drop from Wednesday’s close of 89.87.
Market analysts pointed to additional headwinds, including Mexico’s decision to impose tariffs of up to 50 per cent on goods from Asian nations, including India, and rising far-term bond yields in the US and Japan. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said these factors, combined with foreign portfolio investors selling debt instruments, intensified pressure on the rupee.
The downturn came even as US Trade Representative Jamieson Greer said the United States had received the “best ever” offers from India on the proposed Bilateral Trade Agreement. His remarks, made during a Senate Appropriations Subcommittee hearing, highlighted ongoing challenges related to agricultural products such as corn, wheat, soybeans and cotton as both sides push to finalise the first phase of negotiations.
Meanwhile, the dollar index slipped 0.17 per cent to 98.61 after the US Federal Reserve cut interest rates and delivered a softer-than-expected policy outlook. Brent crude also declined 1.17 per cent to USD 61.48 per barrel in futures trading.
Despite currency volatility, domestic equities showed resilience. The Sensex climbed 443.66 points to 84,834.93 and the Nifty rose 141.05 points to 25,899.05. However, foreign institutional investors offloaded equities worth ₹1,651.06 crore on Wednesday, according to stock exchange data.
