Rupee depreciates to an all time low against the U.S. dollar
| Photo Credit: Getty Images/iStockphoto

The Rupee rebounded from its all-time low levels and appreciated by 19 paise to close at 89.96 against the U.S. dollar on Thursday (December 4, 2025), on weakness in the U.S. dollar index and on reports of the Reserve Bank of India’s supposed intervention.

Forex traders said the greenback fell after Automatic Data Processing (ADP) non-farm payroll data came in sharply below forecast, and the weakness in the U.S. dollar index supported the Rupee at lower levels.

The Rupee opened weak earlier in the day and touched a fresh all-time low of 90.43 amid selling pressure from foreign investors and rising crude oil prices. The delay over the announcement of the India-U.S. trade deal has also weighed on the Rupee.

At the interbank foreign exchange market, the Rupee opened at 90.36. It slipped further to a record low of 90.43 against the greenback in initial deals, registering a loss of 28 paise from its previous closing level.

At the end of Thursday’s (December 4, 2025) trading session, the Rupee was quoted at 89.96 (provisional), up 19 paise over its last close.

On Wednesday (December 3, 2025), the Rupee breached the 90-a-dollar level for the first time to settle at a fresh all-time low of 90.15 against the greenback.

Meanwhile, Chief Economic Adviser V. Anantha Nageswaran on Wednesday (December 3) said the falling Rupee is not affecting inflation or exports. A falling Rupee helps outward shipment but makes imports costlier.

Import-dependent sectors such as gems and jewellery, petroleum and electronics may see lower benefits owing to a rise in input costs, putting pressure on inflationary expectations, Mr. Nageswaran said at an event on Wednesday (December 3, 2025).

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 98.84. Brent crude, the global oil benchmark, rose 0.22% to ₹62.81 per barrel in futures trade.

“We expect the Rupee to trade with a negative bias on continued selling pressure from FIIs and a weak tone in the domestic markets. Elevated crude oil prices may also pressurise the Rupee,” said Anuj Choudhary, research analyst, Mirae Asset ShareKhan.

Forex traders said multiple pressures, such as foreign fund outflows from equities and lingering uncertainty over the India-U.S. trade deal, are keeping investor sentiment fragile.

“Weakness in the U.S. dollar amid disappointing jobs report and rising odds of a rate cut by the Fed in December may support the Rupee at lower levels,” Mr. Choudhary said.

“Any further intervention by the Central Bank may also support the Rupee. Traders may also take cues from weekly unemployment claims data from the U.S. Investors remain cautious ahead of RBI’s monetary policy decision this week,” Mr. Choudhary said, adding, “USD-INR spot price is expected to trade in a range between 89.65 and 90.50”.

On the macroeconomic front, India’s Gross Domestic Product (GDP) has already surprised on the upside, and the latest Hongkong and Shanghai Banking Corporation Limited (HSBC) India Services Purchasing Managers’ Index (PMI) — a key index that measures whether businesses are growing or slowing — rose to 59.8 in November, supported by strong new orders.

The decision of the RBI governor Sanjay Malhotra-headed six-member rate-setting panel will be announced on Friday (December 5, 2025).

The meeting is taking place against the backdrop of falling inflation, rising GDP growth, the Rupee crossing 90 against the dollar and ongoing geopolitical tensions.

On the domestic equity market front, the Sensex climbed 158.51 points to settle at 85,265.32, while the Nifty was up 47.75 points to 26,033.75.

Foreign institutional investors sold equities worth ₹3,206.92 crore on a net basis on Wednesday (December 3, 2025), according to exchange data.

Published – December 04, 2025 05:22 pm IST

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.16% to 98.07. Representational file image.
| Photo Credit: AP

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Forex traders said post the RBI monetary policy announcement, investors will await the Industrial Production (IIP) and CPI data for further cues. File
| Photo Credit: The Hindu

The rupee depreciated 8 paise to close at 84.74 (provisional) against the U.S. dollar on Monday (December 9, 2024), dragged down by fresh foreign fund outflows and a muted trend in domestic equities.

Forex traders said the rupee remains in a weakening mode due to dollar demand from importers and foreign banks.

At the interbank foreign exchange, the rupee opened at 84.70 and touched the lowest level of 84.73 against the greenback during intra-day trade. The unit ended the session at 84.74 (provisional) against the dollar, registering a fall of 8 paise over its previous close.

On Friday (December 6, 2024), the rupee appreciated by 5 paise to settle at 84.66 against the U.S. dollar.

On December 4, the rupee had slumped to its all-time low of 84.76 (provisional) against the U.S. dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.09% at 105.96.

Brent crude, the global oil benchmark, surged 0.89% to $71.75 per barrel in futures trade.

Forex traders said post the RBI monetary policy announcement, investors will await the Industrial Production (IIP) and CPI data for further cues.

The Reserve Bank of India on Friday (December 6, 2024) kept its key interest rate unchanged citing inflation risks, but cut the Cash Reserve Ratio that banks are required to park with the central bank, boosting money with lenders to support a slowing economy.

On the domestic equity market front, the 30-share benchmark index Sensex closed 200.66 points, or 0.25% lower, at 81,508.46 points. The Nifty fell 58.80 points, or 0.24%, to 24,619.00 points.

Foreign Institutional Investors (FIIs) offloaded ₹1,830.31 crore in the capital markets on net basis on Friday (December 6, 2024), according to exchange data.

Meanwhile, India’s forex reserves increased by $1.51 billion to $658.091 billion for the week ended November 29, the RBI said on Friday (December 6, 2024).

The overall reserves had dropped by $1.31 billion to $656.582 billion in the previous reporting week.

At the interbank foreign exchange, the local unit opened slightly strong at 83.59 against the American currency. File
| Photo Credit: Reuters

The rupee appreciated 3 paise to close at 83.60 (provisional) against the U.S. dollar on Wednesday (September 25, 2024), tracking a positive trend in domestic equities and a weak greenback against major currencies overseas.

“However, net foreign fund outflows capped sharp gains in the local unit,” Forex traders said.

At the interbank foreign exchange, the local unit opened slightly strong at 83.59 against the American currency. During the session, it surged 12 paise to touch 83.51.

However, the domestic currency gave up most of its gains to settle at 83.60 (provisional), 3 paise higher than its previous close.

On Tuesday (September 24, 2024), the rupee fell 9 paise to close at 83.63 against the American currency.

“This strength is likely supported by a weak dollar index and continued positive sentiment in Indian markets,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.

On the domestic equity markets front, the Sensex climbed 255.83 points to settle at an all-time high of 85,169.87, while Nifty rallied 63.75 points to hit a record of 26,004.15.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.05% to 100.52.

Brent crude, the international benchmark, was down 0.25% at 74.98 in futures trade.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday (September 24, 2024), offloading shares worth ₹2,784.14 crore, according to exchange data.

Meanwhile, the Asian Development Bank (ADB) on Wednesday (September 25, 2024) retained India’s growth forecast for the current fiscal at 7% and said that the economy is likely to accelerate in the coming quarters on improved farm output and higher Government spending.

Representational image only.
| Photo Credit: The Hindu

The Rupee witnessed a range-bound trading against the U.S. dollar in early trade on September 13, as the support from positive macroeconomic data was negated by elevated crude oil prices and a firm American currency.

Forex traders said domestic retail inflation data and industrial production figures were better than market expectations and supported investors’ sentiments.

However, investors are awaiting cues from the CPI data from the U.S. to know the path the U.S. FED will tread in its fight for lower inflation.

At the interbank foreign exchange, the Rupee was trading in a narrow range. It opened at 82.92 against the dollar. It touched a low of 82.95 against the American currency in initial trade. On Tuesday, the Rupee closed at 82.95 against the U.S. currency. Meanwhile, the dollar index fell marginally by 0.05% to 104.65.

Brent crude futures, the global oil benchmark, was trading 0.21% higher at $92.25 per barrel.

“With a strong pipeline of inflows and active RBI, the Rupee is likely to move towards 82.50 once the 82.80 mark is taken out. On the upside, 83.25 shall remain a strong resistance bar to breach,” CR Forex Advisors MD Amit Pabari said.

In the domestic equity market, the BSE Sensex declined 6.07 points or 0.01% to 67,215.06. The NSE Nifty was up 1.80 points or 0.01% to 19,995.00.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth ₹1,047.19 crore, according to exchange data.

India’s industrial production growth rose to a five-month high of 5.7% in July, mainly due to good showing by the manufacturing, mining and power sectors, according to an official data released on Tuesday.

Retail inflation declined to 6.832% in August after touching a 15-month high of 7.44% in July, mainly due to softening prices of vegetables, but still remains above the Reserve Bank’s comfort zone.