Mumbai:The Indian rupee fell to a fresh all-time low of 90.52 against the US dollar on Friday in early trade, surpassing its previous record of 90.46 reached on December 11. The decline comes as investor sentiment remains subdued due to delays in finalising a trade deal with the United States, while potential portfolio outflows added to the pressure.

Commerce Minister Piyush Goyal confirmed that India’s trade negotiations with the US are progressing but cautioned against negotiating under strict deadlines. The recent US trade team was not part of the latest negotiation round, contributing to market uncertainty.

Analysts note that the rupee’s weakness is largely sentiment-driven rather than structural. Despite the US Federal Reserve’s quarter-point rate cut weakening the global dollar, the rupee continues to depreciate, reflecting market concerns over stalled progress in India-US trade talks, including tariff rationalisation and market access.

Domestic fundamentals remain robust, with strong economic growth, moderating inflation, and comfortable foreign exchange reserves. Experts suggest the rupee could recover once a breakthrough in trade discussions is achieved.