Rupee extended its downward rally on Tuesday, slipping to a record low of 90.83 against the US dollar. The currency began trading on a weak note, opening 0.1% lower at 90.79 against Monday’s close of 90.73, as continued foreign fund outflows and trade-related uncertainty weighed on the domestic currency.The muted opening follows a sharp sell-off in the previous session, when the rupee slid to an all-time intra-day low of 90.80 before ending trade at a record closing level of 90.78 against the greenback. The domestic unit had registered a loss of 29 paise on Monday, extending its recent losing streak.According to forex traders, persistent risk aversion in the market, strong demand for dollars from importers, kept the currency weak. Concerns also rose over the timing and outcome of an India-US trade deal.VK Vijayakumar, chief investment strategist, Geojit Investments Limited told TOI that the currency “is likely to stabilise since November trade deficit has come down to $ 24.53 billion from $ 41.64 billion in October. This will take away some pressure on the FIIs to sell anticipating further depreciation.”Earlier on Monday, rupee opened at 90.53 at the interbank foreign exchange market. The latest slide came after the rupee had already fallen 17 paise, last week on Friday to close at 90.49, which was then its lowest-ever level against the US dollar.“The Indian rupee plunged to a record low, positioning it as the worst performer among the Asian currencies. Despite the better-than-expected trade balance number, the rupee was unable to find support,” Dilip Parmar, Research Analyst, HDFC Securities told PTI.Looking ahead, Anuj Choudhary, Research Analyst, MiraeAsset ShareKhan, said that the currency is likely to remain under pressure in the near term.“The rupee is expected to trade with a negative bias amid delay in Indo-US trade deal and FII outflows,” he said. “A weak dollar and any intervention by the RBI may also support the rupee at lower levels. Investors may watch for central bank monetary policy decisions from BOE, ECB and BoJ. USD-INR spot price is expected to trade in a range of Rs 90.30 to Rs 91.”
