Stock Market Live Update: Jatin Trivedi’s opinion on rupee
LKP Securities VP Research Analyst – Commodity and Currency, Jatin Trivedi said that the rupee slipped below the 90 level for the first time under the pressure of India-US trade deal not being finalized and repeated delays in the timeline. Markets now want firm data rather than great confidence, which has led to a sharp selloff in the rupee in the last few weeks.
Record high metal and bullion prices have worsened India’s import bill, while steep US tariffs are weighing on export competitiveness. This has resulted in weak equity sentiment compared to the global market and import-heavy sectors like mineral fuels, machinery, electrical equipment and gemstones.
Light intervention by RBI has also contributed to the sharp decline. With the RBI policy announcement on Friday, the market expects it to become clear whether the central bank will take steps to stabilize the currency or not. Technically, the rupee is deeply oversold, and any decent recovery would require a move back above 89.80.