(MENAFN- KNN India) New Delhi, Dec 3 (KNN) The Indian rupee hit its record low on Wednesday, falling below the psychological mark of 90 per US dollar.

Reeling under mounting pressure for the past several weeks, the rupee touched a fresh low of 90.29 today on the spot today against the US dollar.

Persistent uncertainties around India-US trade deal and rising imports have been among the factors exerting huge pressure on the local currency.

"Despite the new high, the overall price action remains orderly, with the RBI stepping in selectively to smooth volatility rather than hold any specific level," said Anindya Banerjee, Head Commodity and Currency, Kotak Securities.

"With 90 now broken decisively, it becomes the key pivot. Sustained trading above this area may keep the door open for 90.50–91, while initial support lies near 89.80," Banerjee added.

The currency market expert noted that the trend reflects global Dollar strength and trade-related uncertainty more than any India-specific macro concern.

The slide in rupee against the US dollar has mixed implications. While it could make imports costlier, some of the exporters stand to gain as this makes Indian goods competitive abroad.

The slide in the value of rupee against dollar may lead to local consumers paying higher prices for imported goods such as gadgets, electronics items and many processed food items.

Capital goods being imported into India could also cost more. With India importing bulk of its requirement of oil and gas, the cost of these key commodities could go up which could eventually feed into inflation.

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