The rupee’s drop comes after the currency hit a record low on Tuesday.

The Indian rupee slipped to a fresh record low of 90.20 per US dollar today, compared with Tuesday’s close of 89.96, signalling renewed pressure on the currency. The rupee’s drop comes after the currency hit a record low on Tuesday as persistent FPI outflows and the absence of a US–India trade deal outweighed strong domestic macro fundamentals.

Why Rupee Is Falling?

The rupee, down about 5% against the dollar this year and among Asia’s worst performers, is under pressure from a record-high trade deficit, delays in sealing a US–India trade deal and persistent foreign investor outflows. A surge in imports- particularly gold and silver- alongside falling exports has widened the merchandise trade gap to $41.68 billion, f

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