Mumbai: The Indian rupee, which has been the worst-performing Asian currency so far this year, fell to a new record low of 90.47 against the US dollar on Thursday, losing 0.5 per cent and surpassing its previous all-time low of 90.42 on December 4. The currency closed at 90.3675, down 0.4 per cent for the day following Reserve Bank of India intervention.

Why is the rupee under pressure?

The rupee’s weakness comes amid continuing portfolio outflows and delays in the India–US trade deal, as steep tariffs on exports have begun to bite. Although the greenback softened after a rate cut, it offered little relief due to persistent dollar demand from both foreign and domestic private lenders, likely linked to merchant payments.

Dilip Parmar, foreign exchange research analyst at HDFC Securities,

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