Rupee continues to slide, opens 22 paise down at 90.41 against dollar

Indian rupee

The rupee continued to slide and 22 paise down on December 4 to stay well above the 90-mark on persistent equity outflows and uncertainty around the India-US trade deal.

Limited intervention by the Reserve Bank of India (RBI) is also keeping currency under pressure, experts said.

The rupee opened at 90.41 against the dollar after closing the previous session at 90.19, the first time it breached the psychologically vital 90 mark .

"The way the rupee broke past the 90 mark yesterday signals that the pressure hasn’t eased. In fact, the move suggests that pressure will remain, with the pair potentially drifting toward the 90.70–91 zone in the near term," said Amit Pabari, managing director at CR Forex Advisors.

On December 3, the currency hit the record low and crossed 90-mark against the US dollar for the first time. Despite this, the intervention by the Reserve Bank of India (RBI) remain muted.

Moneycontrol has written that the limited intervention suggests a potential surprise in the monetary policy, which would be announced on December 5.

Experts said that the central bank is expected to acknowledge the rupee's depreciation in the monetary policy but may avoid signalling any levels to the currency.