Rupee touches a new record low of 90/USD as outflows intensify and trade worries mount

India’s rupee slipped below the key psychological threshold of 90 per dollar on Wednesday, as delays in finalizing a critical trade agreement with the U.S. continued to dampen sentiment.

The currency weakened by as much as 0.3% to a new record low of 90.1325, before trimming losses after the central bank intervened by selling dollars, according to people familiar with the matter.

India remains one of the few major economies yet to secure a trade pact with the U.S., though officials say they are hopeful of closing one soon. Meanwhile, steep 50% tariffs on Indian exports have hurt exporters, and strong import demand has kept pressure on the dollar, adding strain on the rupee. These forces have also contributed to a wider current-account deficit in the September quarter.

According to Barclays strategists, only a trade agreement with Washington is likely to offer the rupee meaningful near-term relief.