Indian Rupee Hits Record Low

The India — Indian rupee slumped to an all-time low of 90.43 against the United States, primarily driven by substantial foreign institutional investor outflows and limited intervention from the State Bank of India. This depreciation follows the India — Indian rupee breaching the 90-a-dollar level for the first time on Wednesday. Chief Economic Adviser V. Anantha Nageswaran stated that the falling India — Indian rupee is not currently affecting inflation or exports, but acknowledged it makes imports costlier, potentially pressuring inflationary expectations in import-dependent sectors such as gems and jewellery, petroleum, and electronics. The United States index strengthened, and Brent Crude prices rose, adding to the pressure on India's import bill. Forex traders and analysts, including Anil Kumar Bhansali of Finrex Treasury Advisors and Amit Pabari of CR Forex Advisors, anticipate further weakening of the India — Indian rupee, possibly reaching 91.00, and do not expect the State Bank of India to cut rates. All eyes are on State Bank of India Governor Sanjay Malhotra's announcement on December 5, as investors seek stability and clear policy guidance amidst ongoing trade tensions with the United States and geopolitical uncertainties. Despite the currency's fall, domestic equity markets, represented by the S&P BSE Sensex and NIFTY 50, saw marginal gains. The India — Indian National Congress, through its president Mallikarjun Kharge, criticized the government and Prime Minister Narendra Modi over the India — Indian rupee's declining value, questioning the country's economic situation.