The Indian rupee has fallen to a historic low, breaching the ₹90 per US dollar mark for the first time on Wednesday. The currency slipped to 90.14, down 28 paise from the previous close of 89.86, marking the sixth consecutive session of decline. This significant drop is attributed to ongoing uncertainty regarding the India-US trade deal and persistent foreign investment outflows.

Analysts note that the rupee's decline is exacerbated by limited intervention from the Reserve Bank of India (RBI) and strong demand for dollars from importers. Ritesh Bhansali, Deputy CEO at Mecklai Financial Services, stated, "Exporters are not selling dollars aggressively since the rupee is depreciating, while the dollar demand from importers remains high."

The rupee has depreciated by 4.9% this year, making it the worst-performing currency in Asia, despite India's robust economic growth in the July-September quarter. The lack of a finalized trade agreement with the US, coupled with steep tariffs on Indian exports, has put additional pressure on the currency.

Market experts warn that if the rupee closes above 90, it could lead to more speculative trading, potentially pushing it towards 91. Jateen Trivedi, VP Research Analyst at LKP Securities, emphasized the need for a rebound above 89.80 for any meaningful recovery.

As the market awaits the RBI's monetary policy announcement on Friday, the focus remains on the potential for a trade deal with the US to provide relief for the rupee. The ongoing depreciation risks discouraging foreign investment, with overseas investors having withdrawn $16 billion from India's equity markets this year, raising concerns about inflation in the fuel-dependent economy.

In summary, the Indian rupee's fall past the ₹90 mark highlights the challenges facing the currency amid high dollar demand and trade uncertainties, with analysts closely monitoring the situation for any signs of recovery.