Rupee touches new low! Currency crosses 90 level mark against US dollar

Rupee has extended its downward momentum connected Wednesday, falling 9 paise to deed its lowest level of 90.05 against US dollar successful aboriginal trade. This comes aft the currency had already recorded a dip of 42 paise to adjacent astatine 89.95 against the US dollar, connected Tuesday.According to VK Vijayakumar, main concern strategist astatine Geojit Investments Limited, the inclination mightiness reverse erstwhile the India-US woody is sealed."The rupee depreciation volition halt and adjacent reverse erstwhile the India-US commercialized woody materialises. This is apt this month. A lot, however, volition beryllium connected the details of the tariffs to beryllium imposed connected India arsenic portion of the deal.""A existent interest now, which has contributed to the dilatory drifting down of the market, is the continued depreciation successful the rupee and fears of further depreciation since the RBI is not intervening to enactment the rupee.

This interest is forcing the FIIs to merchantability contempt the improving fundamentals of rising firm net and beardown rebound successful GDP growth," the expert further added.This autumn was chiefly driven by speculators covering their abbreviated positions and importers consistently buying dollars. Market experts pointed to a operation of outer and home factors for the crisp fall, including the spot of the US dollar and the continued hold successful the archetypal tranche of the India-US BTA (trade deal).