Daijiworld Media Network - Mumbai

Mumbai, Dec 16: The Indian rupee tumbled past the Rs 91 mark against the US dollar for the first time on Tuesday, closing at Rs 91.07, reflecting mounting pressure from foreign fund outflows and persistent trade imbalances.

Analysts said continued dollar demand, coupled with elevated crude prices and global market volatility, weighed on the domestic currency. “The rupee’s slide indicates underlying vulnerabilities in external accounts, and investors are keeping a close watch on macroeconomic trends,” noted a currency expert.

The depreciation comes amid heightened expectations of interest rate decisions in the US and sluggish capital inflows. Importers are likely to feel the pinch as costs for essential commodities and crude oil rise, while exporters could gain from competitive pricing.

Market participants expect the rupee to remain under pressure in the near term unless there is a stabilisation in foreign investments or a recovery in trade balances.