Rupee Drops to 90.11 Against Dollar; Markets Slip as Crude Prices Rise

Mumbai: The Indian rupee continued its decline despite various claims and inflated figures. On Monday morning, the rupee fell 16 paise against the US dollar, reaching 90.11 rupees. Rising crude oil prices and foreign fund outflows are cited as the usual reasons.

In the inter bank foreign exchange market, the rupee opened at 90.07 rupees against the US dollar on Monday and later fell 16 paise to 90.11 rupees.

Following the Reserve Bank of India’s (RBI) first repo rate cut in six months, the rupee had closed at 89.95 rupees against the dollar on Friday. The RBI Governor had stated that the rupee is "left to find its own level," but a positive trend did not emerge.

India–US–EU Trade Talks

Three-day discussions on the first phase of a bilateral trade agreement between India and the United States are scheduled to begin on December 10. A delegation from the European Union will also visit India to meet the Commerce Minister to discuss trade issues, including the finalization of the Free Trade Agreement (FTA).

Stock Markets Dip

The Indian stock markets reflected the uncertainty in the currency market: BSE Sensex: fell 316.52 points (0.37%) to 85,395.85, meanwhile, NSE Nifty dropped 106.70 points (0.41%) to 26,079.75

Globally, US Dollar Index fell 0.11% to 98.88, measuring the greenback’s strength against a basket of six currencies. Brent Crude Oil Futures rose 0.17% to 63.85 dollars per barrel

GDP and Market Reaction

The RBI had revised growth estimates to 8.2 % GDP growth in second quarter. 7.3% GDP growth in FY 26.

Despite these optimistic numbers, the markets reacted negatively. Analysts noted that the continued depreciation of the rupee forced foreign investors to sell, further pressuring both the currency and stock markets.