The Indian rupee slumped to a fresh low against the US dollar on Friday, November 21, weighed down by weakened risk appetite as rate cut expectations by the Federal Reserve faded and amid uncertainty over the India-US trade deal.
The rupee touched 89.48, sliding past its previous all-time low of 88.80 hit in late September and again earlier this month. It was down 0.8% on the day.
“Global risk-off sentiment has spilt into currency markets after a sharp overnight sell-off in cryptocurrencies and AI-linked technology stocks. The sudden unwinding of risk trades is weighing on emerging-market currencies, including the Indian Rupee,” said Anindya Banerjee, Head of Research – Currency, Commodity and Interest Rate Derivatives at Kotak Securities.
Adding to the pressure is the lingering uncertainty around the proposed India–US trade deal, which markets had hoped would offer clarity on the bilateral economic outlook, he added. “With no firm timelines emerging, sentiment remains fragile.”
