Rupee Plunges 72 Paise to Close at Record Low of 91.70 Amid Geopolitical Tensions, India-US Trade Uncertainty
The Indian rupee weakened sharply, falling 72 paise to settle at an all-time low of 91.70 against the US dollar, pressured by rising geopolitical tensions and uncertainty surrounding the India-US trade agreement.
The Indian rupee witnessed a steep decline on Tuesday, plunging 72 paise to close at a fresh record low of 91.70 against the US dollar, as global and domestic concerns rattled investor sentiment. The sharp fall was driven by heightened geopolitical tensions and lingering uncertainty over the progress of an India-US trade deal.
Forex market participants said sustained demand for the dollar, coupled with risk-averse global cues, weighed heavily on the local currency. Ongoing geopolitical developments have pushed investors towards safe-haven assets, strengthening the US dollar and exerting pressure on emerging market currencies, including the rupee.
Adding to the weakness were concerns over trade negotiations between India and the United States, with a lack of clarity on timelines and outcomes creating unease in financial markets. Volatility in crude oil prices and foreign fund outflows further contributed to the rupee’s decline.
Analysts noted that while the Reserve Bank of India may step in to manage excessive volatility, the rupee could remain under pressure in the near term unless global risks ease and there is greater clarity on trade and geopolitical fronts.
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