The rupee depreciated 32 paise to an all-time low of 89.85 against the U.S. dollar in early trade on Tuesday (December 2, 2025), weighed down by the broad strength of the American currency in overseas markets and persistent foreign fund outflows.

Forex traders said strong dollar demand from corporates, importers and foreign portfolio investors pressurised the rupee. Moreover, elevated crude oil prices further dented investor sentiments.

At the interbank foreign exchange, the rupee opened at 89.70 against the U.S. dollar before dropping to record low level of 89.85, down 32 paise from its previous close.

On Monday (December 1, 2025), the rupee after sinking to 89.79 in intraday trade, settled at 89.53 against the U.S. dollar.

“The Reserve Bank of India (RBI) has been selling dollars in the market, but it has also bought dollars when Indian rupee rose thus keeping the demand intact,” said Anil Kumar Bhansali, head of treasury and executive director Finrex Treasury Advisors LLP.

Mr. Bhansali further noted that, the fundamentals of the Indian economy like a high Gross Domestic Product (GDP) growth of 8.2% have been overweighed by the dollar demand.

“The uncertainties surrounding the India-U.S. trade deal have not helped the matters and have actually aggravated the dollar buying syndrome,” Mr. Bhansali said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.41.

Brent crude, the global oil benchmark, was trading lower by 0.03% at $63.15 per barrel in futures trade. On the domestic equity market front, the benchmark sensitive index Sensex declined 223.84 points or 0.26% at 85,418.06, while the Nifty was trading lower by 59 points or 0.23% at 26,116.75.

Foreign Institutional Investors (FIIs) sold equities worth ₹1,171.31 crore on Monday (December 2, 2025), according to exchange data.

The rupee stayed weak trading 2 paise lower at 89.24 against the U.S. dollar in early trade on Thursday (November 27, 2025) due to increased demand of American currency from importers amid volatile global trade.

According to forex traders, the rupee found support from fresh inflow of foreign capital into domestic stock markets and lower crude oil prices in the international market.

At the interbank foreign exchange market, the rupee opened at 89.19 and lost further to trade at 89.24 against the greenback in initial deals, down 2 paise from its previous closing level.

The rupee settled flat at 89.22 against the greenback on Wednesday (November 26, 2025).

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.09% lower at 99.43.

Brent crude, the global oil benchmark, fell 0.43% to $62.86 per barrel in futures trade.

On the domestic equity market front, the Sensex rose 305.82 points or 0.36% to 85,915.33 in early trade while Nifty went up 69.15 points or 0.26% to 26,274.45.

Foreign institutional investors (FIIs) purchased equities worth ₹4,778.03 crore on a net basis on Wednesday (November 26), according to exchange data.