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.

India and the U.S. share an equal commitment towards expanding trade and commerce between the two countries, Commerce and Industry Minister Piyush Goyal said, while adding that there could be “good news” on a trade deal once it becomes “fair, equitable, and balanced”.

The Hindu had reported on November 17, citing a senior official in the Ministry of Commerce and Industry, that the first tranche of a trade deal with the U.S., dealing with the reciprocal tariffs, was near completion. 

“Negotiation is a process and India as a nation has to secure its interests, and the interests of its stakeholders, businesses, and balance it with our sensitivities, our farmers, fishermen, and small industries,” Mr. Goyal said while speaking at the 22nd Indo-U.S. Economic Summit organised by the Indo-American Chamber of Commerce. 

“And when we find the right balance, you can rest assured, we will get outcomes on this score,” he added. 

The Minister highlighted the signing of a term contract for the import of 2.2 million tonnes per year of LMG from the U.S. as a sign of the “strong bond” between India and the U.S.

“They see India as a trusted partner,” Mr. Goyal asserted. “We are both equally committed to working to expand trade and commerce between the two countries. When the deal becomes fair, equitable, and balanced, you will hear good news.”

The Minister’s statements come on the back of a resumption of formal trade talks with the U.S. following a pause of 1.5 months due to the U.S.’ imposition of 50% tariffs on imports from India.

Commerce and Industry Minister Piyush Goyal on Thursday (October 23, 2025) said he hoped for a trade deal with the U.S. to materialise in the “near future”. He added that the teams of both countries were in dialogue and that talks were “progressing”.

Mr. Goyal is in Berlin at the moment, following a short trip to Geneva to speak at the 16th session of the United Nations Conference on Trade and Development.

“We are in dialogue with the United States of America,” Mr. Goyal told the media in Berlin. “Our teams are engaged. We recently had the Commerce Secretary visit the U.S. and he met with his counterparts. We continue to engage with them and talks are progressing. We hope to work towards a fair and equitable agreement in the near future.”

Path ahead

These statements come at a time when relations between India and the U.S., though currently overtly thawing, remain tense under the cloud of the 50% tariffs the U.S. has imposed on imports from India. 

U.S. President Donald Trump has recently asserted several times that India will cut its oil imports from Russia — the main reason behind the inflated tariffs on India. However, India has not officially confirmed this and has, in fact, said that it would secure its national and energy security however it saw best. 

At the same time, various Indian government officials have gone on the record to say India is keen to increase its energy imports from the U.S. 

Also read: No deal with U.S. ever final, India should secure its own interests: trade analyst

It remains to be seen when Prime Minister Narendra Modi will meet Mr. Trump next as the dates of the next Quad Summit have not yet been finalised, and Mr. Modi has said he will attend the upcoming ASEAN summit only virtually. 

European deal

Separately, Mr. Goyal during his trip also held talks with various officials in Europe regarding the India-European Union free trade agreement negotiations.

“Had a productive engagement focused on the positive resolution of the outstanding issues with respect to the India-EU FTA with Mr. Maroš Šefčovič, EU Commissioner for Trade and Economic Security, ahead of my Brussels visit starting next week,” Mr. Goyal said on X on Wednesday (October 22). 

“The shared commitment on both sides towards redefining the relationship is deeply encouraging,” he added.

Deeper engagement

On Thursday (October 23), the Minister posted that he had met Katherina Reiche, the German Federal Minister for Economic Affairs and Energy.

“Our discussions focused on deepening Indo-German ties in trade and investment, joint industrial and technological partnerships in green energy, new and emerging technologies, as well as defence,” Mr. Goyal said. “Talks also covered Germany’s commitment to finalising the India-EU FTA.”

During his time in Berlin, the Minister also met Levin Holle, Economic and Financial Policy Advisor at the Federal Chancellery and Germany’s G7 & G20 Sherpa. 

He also chaired a roundtable with CEOs and leaders of German Mittelstand companies at the Indian Embassy, who conveyed their “keenness to do business in India and expand existing investments”, the Ministry of Commerce and Industry said in a release.

The Ministry added that Mr. Goyal is scheduled to meet Xavier Bettel, Deputy Prime Minister and Minister of Foreign Affairs and Trade of Luxembourg and hold one-on-one discussions with CEOs of leading German companies, including Infineon Technologies, Schaeffler Group, Renk, HerrenknechtAG, Enertrag SE, and the Mercedes Benz Group.