The Indian rupee slid to an all-time low as foreign investors pulled capital from local equities. A stalled US trade agreement weighed on sentiment, triggering fresh selling pressure in emerging markets.

Investors have grown wary of Indian assets amid prolonged uncertainty over bilateral trade terms. The currency's decline reflects broader concerns about capital outflows impacting developing economies.

Market participants are watching for signs of intervention from the Reserve Bank of India. Analysts expect further volatility unless trade negotiations show concrete progress or policymakers introduce stabilizing measures.