Indian Rupee Slides to Record Low on Delay in US Trade Deal

The Indian rupee hit a fresh all-time low against the dollar, pressured by uncertainty around a potential US trade deal.

The currency fell as much as 0.8% to 89.3775 per dollar on Friday, weakening past the previous record low of 88.8050 per dollar hit in September. A firmer dollar, driven by reduced expectations of Federal Reserve rate cuts, has also weighed on emerging-market currencies.

Delays in finalizing a trade agreement between India and the US are dampening sentiment, even after the South Asian nation recently suggested a deal was close. The US currently levies the highest tariffs on India among Asian nations. Meanwhile, improving US-China trade are eroding India’s relative advantage, according to Emkay Global Financial Services.