Indian Rupee hits record low despite lower trade deficit, PMIs cool down
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The Indian Rupee (INR) extends its losing streak for the fourth trading day against the US Dollar (USD) on Tuesday. The USD/INR pair stretches its bull run to near 91.25 as the continuous outflow of foreign funds from the Indian stock market amid trade frictions between the United States (US) and India has remained a major drag on the Indian Rupee. A report from Reuters has also shown that the USD/INR pair has remained firm due to strong dollar demand linked to likely maturity of positions in the non-deliverable forwards (NDF) market and continued foreign portfolio outflows. So far this month, Foreign Institutional Investors (FIIs) have offloaded stake worth Rs. 21,073.83 crore in the Indian equity market, while remaining net sellers in all trading days. Meanwhile, better-than-projected India’s Trade Deficit Government data for November has failed to lift investors’ sentiment toward the Indian Rupee. On Monday, the data showed that India’s merchandize trade deficit shrank to $24.53 billion from $41.68 billion in October, beating a Reuters poll estimate of $32 billion. The trade deficit report also showed that India’s overall goods exports for November rose 19%, largely contributed by a 22.6% increase in merchandize transport to the US. On the economic data front, India’s HSBC Composite Purchasing Managers’ Index (PMI) dropped to 58.9 from 59.7 in November, suggesting that the overall business activity expanded but at a moderate pace. The overall private sector output growth cooled down due to a slowdown in both manufacturing and the service sector activity. Daily digest market movers: Investors await US NFP data for October and November The Indian Rupee remains on the back foot against the US Dollar, even as the latter underperforms broadly ahead of the US Nonfarm Payrolls (NFP) combined report for October and November, which will be published at 13:30 GMT. At the…
Filed under: News - @ December 16, 2025 6:21 am