India’s rupee fell to a fresh record low of over 90 per dollar Wednesday, extending recent declines, with traders partly blaming the delay in striking a trade deal with the United States.The rupee is among Asia’s worst forex performers this year, pressured by India’s current account deficit and foreign outflows.New Delhi’s early trade negotiations with Washington sparked optimism that foreign capital would flow into the world’s fifth-largest economy — helping push the rupee to a nearly six-month-high of 83.75 against the dollar in May.But setbacks in trade talks and weak corporate earnings have caused overseas investors to offload well over $16 billion in Indian shares this year so far.On Wednesday morning, the rupee weakened as much as 0.35 percent to a symbolic new low of 90.19, according to Bloomberg data.Dilip Parmar, an analyst at HDFC Securities, told AFP the rupee’s fall was “first and foremost” an “imbalance of demand and supply” with foreign fund outflows and trade deal uncertainty adding fuel to the fire.But another key factor, Parmar added, was a lack of “big and impactful” intervention from India’s central bank.Analysts say the Reserve Bank of India (RBI) has this year sporadically defended the rupee through aggressive dollar sales to support key levels, but also appears of late to be allowing greater currency flexibility.”Defending a specific level in the current macro backdrop would be costly and counterproductive,” Raj Gaikar, research analyst at SAMCO Securities, told AFP.”With inflation running well below earlier expectations, the policy priority has shifted toward supporting growth rather than expending reserves to hold an artificial line,” he said.The central bank was intervening only to ease volatility, not to reverse a trend driven by fundamentals, Gaikar added.He expects the rupee to settle in a “88-92 range”.”This more hands-off approach signals a transition to a market-aligned regime rather than a rigid defence of symbolic levels,” he said.

Sri Lankan authorities said Wednesday they would need some $7 billion to rebuild homes, industries and roads destroyed by Cyclone Ditwah, which has left at least 465 people dead so far.Hopes have faded for the 366 other people unaccounted for after mudslides and floods triggered by the cyclone, which brought record rains across the island last week.”Our initial estimate is that we will need about six to seven billion dollars for the reconstruction,” said Prabath Chandrakeerthi, the Commissioner-General of Essential Services who is leading the massive recovery effort.Chandrakeerthi added that the government was providing 25,000 rupees ($81) to each family to help clean their homes, while those who lost their homes would receive up to 2.5 million rupees ($8,100).President Anura Kumara Dissanayake said foreign assistance was essential to finance the recovery, as the country was still emerging from its worst ever economic crisis three years ago.Dissanayake declared a state of emergency on Saturday and has vowed to rebuild with international support.”We were just coming out of the economic crisis when we were hit by this disaster, which is the biggest challenge faced by any government,” Dissanayake told his top officials on Tuesday.Sri Lanka declared a sovereign default on its $46 billion external debt in April 2022 after the country ran out of foreign exchange to finance even the most essential imports, such as food, fuel and medicines.The country secured a $2.9 billion bailout loan from the IMF, which has said the economy has since stabilised, but Sri Lanka must maintain its reforms, including austerity measures.The crisis in 2022 led to months of street protests which forced then-president Gotabaya Rajapaksa to step down.Floodwaters in the capital Colombo were receding Wednesday after major flooding over the weekend.Over 1.5 million people in the country have been affected by the natural disaster, with some 200,000 in state-run shelters.Some of the worst-affected areas in the central hills remain inaccessible, and authorities were working to clear the roads and restore communication lines.Despite the disaster, the tourism-reliant country welcomed a luxury cruiseliner to Colombo port on Tuesday, authorities said.The arrival sends “a clear message to the world: Sri Lanka is safe, open, and ready to embrace visitors once again,” the country’s tourist board said.