NERVOUS NINETIES

THE RUPEE BREACHED past the psychological level of 90-adollar for the first time on Wednesday, as the delayed trade deal between India and the US continued to dampen market sentiments. In addition, persistent foreign portfolio outflows and limited intervention by the Reserve Bank of India kept the currency under pressure.

- CHRISTINA TITUS

The domestic currency finally closed 30 paise down at 90.19 after hitting 90.29 intraday. The rupee pared some losses after likely intervention from the RBI, said forex traders. In fact, the rupee has taken just eight sessions to depreciate from 89 to 90. The pessimism spilled over into the equity market, with the benchmark NSE Nifty 50 Index declining as much as 0.5%.

The latest fall has taken the depreciation in FY26 to 5.53%, the worst in three years. In the calendar year 2025, it depreciated 5.35% so far.

However, the government does not seem to be too worried. Chief Economic Advisor V Anantha Nageswaran said that he was not "losing sleep" over the weakening of the domestic currency as long as it was not hurting exports. "If it has to depreciate now probably is the right time," he added.

HOWEVER, UDAY KOTAK, Founder & Director of Kotak Mahindra Bank, urged Indian businesses to break out of their comfort zone, warning that foreign investors appear to be calling the shots in current market dynamics.