Rupee hits record low, approaches 90 per dollar mark; what's next?
Of late, the currency has turned weak on risk sentiment as falling expectations of a US Federal Reserve rate cut post better than expected jobs reports continued to affect the emerging-market currencies.
- Dec 1, 2025,
- Updated Dec 1, 2025 12:25 PM IST
The Indian rupee reached a record low of Rs 89.83 against the US dollar on Monday, marking a fall of 48 paise from Friday's close of Rs 89.35. Of late, the currency has turned weak on risk sentiment as falling expectations of a US Federal Reserve rate cut post better than expected jobs reports continued to affect the emerging-market currencies.
Rising demand for dollars from importers and limited supply from exporters has further weakened the Indian currency. Since late August, when the United States imposed steep tariffs on Indian exports, foreign investors have withdrawn $16.5 billion from Indian equities, positioning the rupee as the weakest Asian currencies in 2025. The Indian rupee has fallen 4.3% against the US dollar in 2025.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "With no clear progress on the India–US trade deal and uncertainty still dominating sentiment, rupee weakness may continue toward the 90 mark. Immediate resistance for the rupee now stands at 89.20, while the bias remains firmly on the downside."
Jigar Trivedi, Senior Research Analyst at Reliance Securities said, "The currency remained weighed down by trade imbalances, foreign portfolio outflows, and intermittent state-bank dollar sales as large forward positions matured. Sentiment has also weakened since the steep US tariffs on Indian exports imposed in late August, while stalled US–India trade negotiations added to the drag. On the policy front, most economists expect the Reserve Bank of India to deliver a 25 bps cut on December 5 and then pause through 2026, following a cumulative 100 bps of easing earlier this year. However, the strong GDP surprise has prompted some analysts to argue the RBI may opt to hold rates steady, offering near-term support for the rupee."
Meanwhile, Sensex rose 452.35 points to a new all-time high of 86,159.02 and the broader NSE Nifty index advanced 122.85 points to touch a lifetime peak of 26,325.80. The rally was led by strong domestic macro data and gains in select index heavyweights.
The Indian rupee reached a record low of Rs 89.83 against the US dollar on Monday, marking a fall of 48 paise from Friday's close of Rs 89.35. Of late, the currency has turned weak on risk sentiment as falling expectations of a US Federal Reserve rate cut post better than expected jobs reports continued to affect the emerging-market currencies.
Rising demand for dollars from importers and limited supply from exporters has further weakened the Indian currency. Since late August, when the United States imposed steep tariffs on Indian exports, foreign investors have withdrawn $16.5 billion from Indian equities, positioning the rupee as the weakest Asian currencies in 2025. The Indian rupee has fallen 4.3% against the US dollar in 2025.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "With no clear progress on the India–US trade deal and uncertainty still dominating sentiment, rupee weakness may continue toward the 90 mark. Immediate resistance for the rupee now stands at 89.20, while the bias remains firmly on the downside."
Jigar Trivedi, Senior Research Analyst at Reliance Securities said, "The currency remained weighed down by trade imbalances, foreign portfolio outflows, and intermittent state-bank dollar sales as large forward positions matured. Sentiment has also weakened since the steep US tariffs on Indian exports imposed in late August, while stalled US–India trade negotiations added to the drag. On the policy front, most economists expect the Reserve Bank of India to deliver a 25 bps cut on December 5 and then pause through 2026, following a cumulative 100 bps of easing earlier this year. However, the strong GDP surprise has prompted some analysts to argue the RBI may opt to hold rates steady, offering near-term support for the rupee."
Meanwhile, Sensex rose 452.35 points to a new all-time high of 86,159.02 and the broader NSE Nifty index advanced 122.85 points to touch a lifetime peak of 26,325.80. The rally was led by strong domestic macro data and gains in select index heavyweights.