The rupee weakened to an all-time low of 90.56 against the US dollar on Friday (December 12), pressured by a mix of domestic and global factors that weighed on sentiment. The currency opened at 90.43 and extended Thursday’s (December 11's) sharp drop, despite intermittent support from the Reserve Bank of India.

Here are the key drivers behind the rupee’s latest decline:

Uncertainty over India–US trade deal

Markets remain on edge as negotiations between India and the visiting US delegation enter the final day. Traders say the absence of clear progress has fuelled caution. MUFG noted the rupee is “reflecting ongoing uncertainty over a potential trade deal,” with concerns that tariff issues may not be resolved soon.

Persistent foreign investor outflows

Foreign Institutional Investors con

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