Mumbai, Dec 4 (NationPress) The Indian rupee faced a significant drop on Thursday, falling by 22 paise and remaining firmly above the 90-per-dollar threshold due to weak global signals.

The currency is feeling the strain from ongoing equity outflows and uncertainty surrounding the India-US trade agreement, as noted by market analysts.

Opening weaker at 90.41 against the US dollar, the rupee has declined from its previous close of 90.19. This downturn follows the rupee crossing the psychologically significant 90 mark for the first time on December 3, marking a new all-time low.

Despite this sharp decline, the Reserve Bank of India has avoided significant intervention so far, a decision that analysts argue adds to the currency's ongoing pressure.

Market experts speculate that the central bank may tackle the rupee's recent depreciation in its forthcoming monetary policy update. However, they also predict that the RBI will likely refrain from providing specific guidelines regarding currency levels, even as concerns about depreciation rise.

Simultaneously, Indian equity markets opened lower with consistent foreign investor selling dampening sentiment on Dalal Street. Analysts attribute this opening to the weekly F&O expiry for the Sensex, which adds to the cautious atmosphere among traders.

Foreign institutional investors (FIIs) continued their selling streak for the third consecutive session on December 3, offloading equities worth Rs 3,692 crore. In contrast, domestic institutional investors (DIIs) maintained their buying momentum, acquiring Rs 4,730 crore during the same period.

On a positive note, India's economic fundamentals are improving, showcasing robust growth, low inflation, supportive fiscal and monetary policies, and signs of steadily enhancing corporate earnings, according to market observers.

They emphasize that while negative factors may impact the market in the short term, positive elements are likely to prevail in the mid-term, allowing the market to resume its upward trajectory.