Rupee hits record low on feeble foreign flows, drawing RBI to defend 90 level

The Indian rupee hit an all-time low Tuesday, pressured by trade deficits and tepid inflows, despite strong economic fundamentals. The Reserve Bank of India intervened to prevent a breach of the 90 per dollar mark. Analysts suggest underlying weaknesses may force the RBI to allow further depreciation over time, as foreign investors pull back and importers rush to buy dollars.

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