Rupee Hits 92,Recording An All Time Low

The Indian rupee touched a fresh record low of 92.00 against the US dollar in early trade on Thursday, marking the third record breach in less than a week. On Wednesday, the rupee had depreciated by 31 paise to close at 91.99, continuing its volatile trend in the foreign exchange market.

Earlier on Tuesday, the rupee had briefly recovered from its all-time low, gaining 22 paise to settle at 91.68 against the US dollar, supported by softer global cues.

Meanwhile, precious metals surged sharply, with gold and silver futures jumping six per cent to fresh record highs. Domestic gold futures climbed to ₹1,75,869 per 10 grams, while silver futures soared to an all-time high of ₹4,07,456 per kilogram in early trade.

Market analysts attributed the initial support to the rupee to a weaker US dollar index and improved investor sentiment following a major trade development between India and the European Union. India and the EU announced the signing of a long-awaited free trade agreement, which is expected to provide duty-free access to European markets for several Indian sectors, including apparel, chemicals and footwear.

Under the agreement, the EU will receive concessional-duty access to the Indian market for products such as cars and wines. The deal has been described as a landmark pact that could create one of the world’s largest trading markets, covering nearly two billion people.