Indian Rupee Slips Further as Trade Delay Hits Confidence
India’s rupee continued to slide this week. The currency touched a fresh record low of over 90 per US dollar. The rupee trade delay with Washington added more pressure to the already fragile sentiment.
Traders expected a faster breakthrough in early negotiations. However, the talks slowed at a crucial time. As a result, investors grew cautious about India’s short term growth outlook.
Market Pressure Grows
Foreign investors pulled out more than $16 billion from Indian stocks this year. This outflow created a sharp imbalance in demand and supply. In addition, weak corporate earnings reduced confidence in the local market.
On Wednesday, the rupee slipped as much as 0.35 percent to 90.19. Bloomberg data showed steady selling through the morning. Analysts noted that the currency faced pressure from multiple directions.
Dilip Parmar from HDFC Securities explained the situation in simple terms. He said heavy foreign withdrawals created a natural drag on the rupee. The ongoing rupee trade delay added even more uncertainty.
Central Bank Strategy
Many traders looked toward the Reserve Bank of India for support. However, experts believe the central bank now prefers a flexible approach. This strategy allows the market to set a more realistic exchange rate.
Parmar noted that the RBI did not deliver large or impactful interventions recently. Therefore, the rupee moved more freely within its range. This shift signaled a change in policy priorities.
Raj Gaikar from SAMCO Securities offered a similar view. He said defending any “magic number” could be costly. With inflation now softer than expected, the RBI seems more focused on growth. As a result, the bank steps in mainly to reduce volatility rather than reverse market driven trends.
Gaikar expects the rupee to move between 88 and 92 for now. He added that this hands-off style reflects a transition to a more market-aligned system. It also shows that symbolic levels matter less than long term stability.
