Indian Rupee Tests Record Low; Trade Deal Stalemate Puts 90-Level at Risk

　　 The Indian rupee has tested historic lows multiple times this year, with some analysts warning that the rupee-to-dollar exchange rate may fall below the crucial psychological level of 90 if a key trade deal with the United States is not reached soon.

　　 Market sentiment took a hit as a trade agreement with Washington, aimed at reducing one of Asia's most stringent tariff rates, was delayed, causing the Indian rupee to hit a new all-time low of 89.8537 against the U.S. dollar on Tuesday.

　　 In offshore markets, the rupee weakened further to 90.05. India remains one of the few major economies yet to sign a trade agreement with the U.S., despite officials expressing optimism about reaching a deal soon. The delay has contributed to a widening current account deficit in the September quarter, further pressuring the rupee.

　　 David Forrester, a foreign exchange strategist at Crédit Agricole, stated that for now, the Reserve Bank of India may allow the rupee to weaken slightly further to boost export competitiveness amid U.S. tariff pressures.