US sanctions, trade-deal delays drag rupee to new record low at 89.61. Down 4.6% this year, what’s next?

The Indian rupee hit a new lifetime low against the dollar on Friday, weakening to 89.61. This decline was driven by reduced risk appetite due to fading hopes of a Federal Reserve rate cut and ongoing U.S.-India trade tensions. Foreign investors have also pulled $16.5 billion from Indian equities this year.