Last Updated:
The currency slipped to 90.5550 against the US dollar, breaking its earlier all-time low of 90.55 recorded on December 12
Rupee
The Indian rupee fell to a fresh record low on Monday, pressured by a prolonged stalemate in US–India trade negotiations, as well as continued foreign outflows from domestic equities and bonds. The currency slipped to 90.5550 against the US dollar, breaking its earlier all-time low of 90.55 recorded on December 12.
India rupee is facing pressure due to lower sentiment and strain from portfolio outflows in the absence of a trade deal between India and US, according to Reuters report.
Expectations of further rate cuts by Fed in near future has pushed down the dollar index for the third consecutive week.
Earlier, Goldman Sachs analysts in a noted stated that minimal interaction of central bank and subdued capital flows are the major reasons behind the poor’s performance of the rupee in recent times, compared to emerging market peers.
Meanwhile, India’s 10-year benchmark 6.48 per cent 2035 bond’s yield rose to 6.59 on Friday last week, according to Reuters report. It means borrowing has become a bit costlier and bond prices have fallen.
The report added that bonds saw a heavy selling pressure from foreign players. Meanwhile, there’s a sharp spike in overnight index swap rates due to offshore paying interest.
Foreign investors net sold bonds worth over Rs 54 billion, while foreign banks offloaded bonds worth around Rs 30 billion in the first two weeks of December.
Wontae Kim, portfolio manager at Western Asset Management, said he remains broadly neutral on the rupee but is “overweight” on government bond duration, adding that his stance has not changed meaningfully over the past year, Reuters reported.
Click here to add News18 as your preferred news source on Google. December 15, 2025, 09:13 IST
Read More