Rupee Hits 90 Barrier: What These Charts Say About India's Forex Woes

Depreciation Drivers

The Rupee hit 90.14/USD, its sixth straight drop, despite RBI dollar sales. Charts show YTD 5.3% slide vs peers like Rupiah (3.17%), fueled by FPI equity exits and weak FDI amid US tariffs hurting exports. Trade limbo delays relief, widening current account gaps.​

Economic Impacts

Higher import costs (oil, metals) inflate inflation; exporters gain edge but importers hedge aggressively. RBI eyes MPC meet for stability signals, with forecasts to 91/USD sans trade pact. Psychologically, 90 breach triggers stop-losses, amplifying volatility.​

Key Highlights

YTD Fall: 5.08% depreciation; worst in Asia post-2022.​

Outflows: $17B FPI sales; tepid ECB/FDI.​

Trade Woes: Oct deficit >$40B; US tariffs up to 50%.​

RBI Role: Muted interventions; defends below 90 psych level.​

Outlook: Trade deal key; potential rebound above 89.80.​

Sources: Reuters, Times of India, Moneycontrol, Economic Times​