USD/INR: India Rupee Declines to 90.56 on December 12, Amid Trade Uncertainty

The Indian rupee fell to a fresh low of 90.56 against the US dollar, influenced by uncertainty surrounding ongoing India–US trade discussions and sustained foreign investor outflows.

As per news reports, importers’ increased dollar purchases and rising global commodity prices added further pressure, contributing to the currency’s continued depreciation.

Rupee Hits New Low in Early Trade

The rupee opened at 90.43 at the interbank foreign exchange market before slipping to 90.56, marking a 24-paise decline from its previous close.

The fall follows Thursday’s drop to 90.32, the lowest level at the time, signalling persistent downward momentum.

Importer Demand and Market Conditions

As per news reports, forex traders attributed the weakness to increased dollar buying by importers amid elevated precious metal prices. This trend, combined with limited positive cues, reinforced pressure on the domestic currency.

Influence of Trade Negotiations and RBI Watch

Market participants are monitoring the final day of discussions between Indian officials and the visiting US delegation.

Broader Global and Domestic Market Indicators

The dollar index edged slightly higher to 98.37, signalling resilience of the US currency. Brent crude prices also rose marginally.

In domestic equities, the Sensex gained 170.40 points to reach 84,988.53, while the Nifty advanced to 25,996.95.

Read More: As Rupee Slips Past 90/$ Mark, RBI Announces US$5 Billion Dollar-Rupee Sell Swap.

Conclusion

The rupee’s movement reflects a combination of trade-related uncertainty, global market shifts and sustained foreign selling. Currency stability in the near term may depend on the outcome of ongoing trade discussions and broader economic signals.

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