Rupee hits record low in early deals, more correction ahead?

Indian rupee hit a fresh record low in early deals today despite a rally in the equity market. After ending at 90.32-a fresh all time closing low on Thursday, the Indian currency slipped 24 paise to a record low of 90.56 against the US dollar. Analysts attribute high demand for dollar and a delay in the India-US trade deal for the rupee crash.

The rupee’s depreciation was exacerbated amid likely limited intervention from the central bank to stabilise the market.

Dilip Parmar, Research Analyst, HDFC Securities said, "Looking ahead, the immediate market resistance for the spot USDINR pair now sits at 90.70 and the crucial support level has shifted significantly higher to 90.10 from the prior mark of 89.70. This change in the support floor confirms the underlying sentiment remains heavily skewed toward a further weakening of the rupee in the near term."

Meanwhile, Nifty rose 64 pts to 25,963 and Sensex rose 189 points to 84,999 in the early morning session. The market rose for the second straight session today after falling for three days.