During intra-day trade, the rupee touched 91.14 before recovering slightly. Over the past ten sessions, the domestic currency has fallen from 90 to 91 per dollar, losing 1 per cent in the last five sessions alone

The Indian rupee plunged 23 paise to a record low of 91.01 against the US dollar on Tuesday, as widening trade deficit and delays in the India-US trade agreement weighed on market sentiment. The slide comes despite a weaker dollar and a sharp decline in global crude oil prices.

During intra-day trade, the rupee touched 91.14 before recovering slightly. Over the past ten sessions, the domestic currency has fallen from 90 to 91 per dollar, losing 1 per cent in the last five sessions alone.

The matter was raised in the Rajya Sabha, where Minister of State for Finance Pankaj Chaudhary attributed the depreciation to the expanding trade deficit and uncertainties surrounding the ongoing trade discussions with the US. “Depreciation may enhance export competitiveness but could push up import costs. The overall impact on domestic prices depends on international commodity price pass-through,” he said.

Citing official data, Chaudhary noted that the rupee has fallen 5.1 per cent this year until December 3. Historical trends show persistent volatility: the currency declined 4.5 per cent in 2015, 2.6 per cent in 2016, and saw intermittent gains, including a 6.4 per cent rise in 2017. From 2018 to 2024, the rupee registered successive declines ranging from 0.6 to 10.2 per cent.

RBI maintains a market-determined approach, monitoring global developments and intervening only during excessive volatility. Forex traders, however, warn that the rupee could cross 92 per dollar this month if uncertainties persist. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors, said, “Dollar buying surged as the US has not agreed to India’s trade proposals, keeping the deal in limbo. FPIs will continue to sell, and 92 seems imminent unless RBI intervenes.”

At the interbank market, the rupee opened at 90.87, traded between 90.76 and 91.14, and settled at 91.01. Foreign institutional investors sold equities worth Rs 1,468.32 crore on Monday.

Meanwhile, wholesale price inflation remained negative for the second straight month at (-)0.32 per cent in November, even as food prices rose. Global crude Brent fell 1.78 per cent to USD 59.48 per barrel, while the dollar index was marginally lower at 98.23.

On the domestic stock front, Sensex dropped 533.50 points to 84,679.86, and Nifty fell 167.20 points to 25,860.10.