Rupee Hits Record 90.56 vs. US Dollar on Trade Stalemate, Capital Outflow

• The Indian Rupee hit a new record low of 90.5550 against the US Dollar on Monday, breaking the previous record of 90.55.
• The depreciation is primarily due to a prolonged stalemate in US-India trade talks and continuous withdrawal of foreign capital from domestic shares and bonds.
• Analysts attribute the Rupee's weak performance to minimal central bank intervention and slow capital inflows.
• Foreign investors have significantly sold Indian bonds, leading to a rise in the 10-year benchmark bond yield and higher borrowing costs.
• Experts predict the Rupee's next support level at 90.80, with potential to reach 91-92, as RBI intervenes mainly to control excessive volatility.

Why It Matters: Rupee's record low against US Dollar signals economic pressure and affects your finances.