The rupee saw the steepest single-day fall in over three months, breaching 89-a-dollar-mark for the first time and closed the session 93 paise lower at 89.61 (provisional) against the greenback on Friday (November 21, 2025), amid negative cues from domestic as well as global equity markets triggered by trade-related uncertainties.
Forex analysts attributed the sharp fall in Indian currency to the massive selling of global IT stocks amid risk-off sentiment and the lack of clarity over the proposed India-U.S. trade deal.
At the interbank foreign exchange market, the rupee opened at 88.67 and plunged to hit its lowest-ever intra-day level of 89.65 before ending the session at 89.61 (provisional) against the American currency, logging a loss of 93 paise from its previous close.
On Thursday (November 20, 2025), the rupee depreciated 20 paise to close at 88.68 against the U.S. dollar.
The unit had recorded its previous all-time intra-day low of 88.85 on September 30. The previous lowest closing level was registered at 88.81 against the U.S. dollar on October 14.
Earlier, the Indian currency had witnessed such a steep fall during intra-day on July 30 when it lost 89 paise.
Anindya Banerjee, Head of Research Currency, Commodity and Interest Rate Derivatives, Kotak Securities, said the global risk-off sentiment has spilt into currency markets after a sharp overnight sell-off in cryptocurrencies and AI-linked technology stocks.
“The sudden unwinding of risk trades is weighing on emerging-market currencies, including the Indian rupee. Adding to the pressure is the lingering uncertainty around the proposed India-U.S. trade deal, which markets had hoped would offer clarity on the bilateral economic outlook. With no firm timelines emerging, sentiment remains fragile,” Mr. Banerjee said.
Reserve Bank Governor Sanjay Malhotra, on Thursday (November 20, 2025), said the central bank does not target any level for the rupee, and the recent depreciation of the domestic currency against the U.S. dollar is primarily due to trade uncertainties following the imposition of tariffs by the U.S. administration.
“We do not target any level. Why is the rupee depreciating? [It] is because of the demand. It is for the markets to decide… It is a financial instrument, and there is a demand for dollars, and if the demand for dollars goes up, the rupee depreciates; and if the demand for the rupee goes up, the dollar comes down, then it appreciates,” Mr. Malhotra said at an event in the national capital.
The Governor also exuded confidence that India will secure a favourable trade deal with the U.S., which will help ease the pressure on the current account.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.09% up at 100.17.
Brent crude, the global oil benchmark, was trading 2.18% lower at $62.00 per barrel in futures trade.
On the domestic equity market front, the Sensex declined 400.76 points, or 0.47%, to settle at 85,231.92, while the Nifty tanked 124.00 points, or 0.47%, to 26,068.15.
Foreign institutional investors bought equities worth ₹283.65 crore on a net basis on Thursday (November 20, 2025), according to exchange data.
The government data released on Thursday (November 20, 2025) showed the pace of growth in the country’s eight key infrastructure sectors stayed flat year-on-year in October as expansion in output of petroleum refinery products, fertiliser and steel was offset by a contraction in coal and electricity production.
The eight core industries of coal, crude oil, natural gas, petroleum refinery products, electricity, fertiliser, and steel had expanded 3.3% in September and by 3.8% in October 2024.
Published – November 21, 2025 05:08 pm IST
