Rupee may decline further as RBI has little elbow space

The local currency market is bracing for more weakness in the coming weeks, after the rupee sharply slid to a record low of 89.41 against the US dollar within the last hour of trade on Friday.

- Subhana Shaikh

The Indian rupee has declined 4.4% since April.

(AFP)

While traders expect the Reserve Bank of India (RBI) to step in early next week to push the pair away from the psychologically important 90-mark, economists and treasury officials warn that the broader trend of depreciation remains intact. The 90-mark doesn’t seem quite distant now, in the absence of a trade deal.