Rupee hits record low of 90.43 against US dollar, slumps 28 paise

The rupee slumped 28 paise to an all-time low of 90.43 against the US dollar in early trade on Thursday, Dec 3, amid substantial foreign institutional investor outflows and restrained intervention from the Reserve Bank of India.
Forex traders said that restrained central bank intervention ahead of the crucial Monetary Policy Committee (MPC) decision and significant dollar demand from importers have exerted persistent downward pressure on the local currency. At the interbank foreign exchange market, the rupee opened at 90.36. It slipped further to a record low of 90.43 against the greenback in initial deals, registering a loss of 28 paise from its previous closing level.
On Wednesday, the rupee breached the 90-a-dollar level for the first time to settle at a fresh all-time low of 90.15 against the greenback.
Meanwhile, Chief Economic Adviser V Anantha Nageswaran on Wednesday said the falling rupee is not affecting inflation or exports.
A falling rupee helps outward shipment but makes imports costlier.
Import-dependent sectors such as gems and jewellery, petroleum and electronics may see lower benefits due to a rise in input costs, putting pressure on inflationary expectations, he said at an event on Wednesday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14 per cent higher at 98.99.
Brent crude, the global oil benchmark, rose 0.49 per cent to USD 62.98 per barrel in futures trade.
Forex traders believe investors are adopting a cautious stance amid ongoing trade tensions with the US, with expectations of a settlement towards the end of the year.