Rupee Crosses 90 Against Dollar Amid US-India Trade Deal Uncertainty and FPI Outflows

The Indian rupee fell below the 90-mark against the US dollar for the first time, hitting a record low of 90.16, driven by uncertainty over the US-India trade deal, persistent FPI equity selling, and limited US dollar supply. In 2025, FPIs have sold Rs 1.48 lakh crore, including Rs 4,335 crore in early December, pressuring the currency. RBI intervened to manage volatility but avoided defending a specific rate. The slide has raised hedging costs, widened USD/INR forward premiums, and increased the India-US 10-year yield spread. While exporters may benefit, importers and inflation could be adversely affected.