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

Forex traders said the domestic unit traded in a tight range and hovered around its all-time low level. File
| Photo Credit: The Hindu

On January 23, 2025, Rupee declined nine paise to settle at 86.44 against the U.S. dollar. File
| Photo Credit: The Hindu

Rupee appreciated 18 paise to 86.26 against the U.S. dollar in morning trade on Friday (January 24, 2025), supported by positive domestic equities and soft American currency index.

Forex traders said weak crude oil prices and positive domestic markets supported the local unit, while sustained foreign fund outflows weighed on the local unit. Traders further noted that the upcoming Union Budget will play a crucial role in shaping market sentiment and the Rupee’s trajectory.

At the interbank foreign exchange, the Rupee opened at 86.31 and touched 86.26 against the U.S. dollar, registering a rise of 18 paise from its previous close. The local unit also touched 86.33 against the U.S. dollar initial trade. On Thursday (January 23, 2025), the Rupee declined nine paise to settle at 86.44 against the U.S. dollar.

The Rupee has shown signs of resilience, appreciating over the past two trading sessions owing to a weakening dollar. Moreover, on a positive note, upcoming inflows from fundraising activities by IREDA of $570 million are expected to provide additional support to the Rupee, CR Forex Advisors MD Amit Pabari said.

“… The USD/INR pair is expected to trade within the range of 86.20–86.80. A break below 86.20 could pave the way for further downside toward 85.80–86.00 levels,” Mr. Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.15% at 107.88. Brent crude, the global oil benchmark, fell by 0.22% to $78.12 per barrel.

On the domestic equity market front both the benchmark indices Sensex and Nifty opened on a positive note. The 30-share sensitive index Sensex was trading 166.71 points or 0.22% up at 76,687.09 in early trade. Similarly, the wide-based Nifty trading was trading higher by 49.30 points or 0.21% at 23,254.65 points.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Thursday (January 23, 2025), as they offloaded shares worth ₹5,462.52 crore, according to exchange data.

On December 27, 2024, the local currency touched its lifetime intra-day low of 85.80 against the greenback. File
| Photo Credit: The Hindu

The Rupee depreciated four paise to close at a record low of 85.79 (provisional) against the U.S. dollar on Friday (January 3, 2025), as strong dollar demand from importers and a muted trend in domestic equities weighed on investors’ sentiments.

Forex traders said the dollar gained against most currencies during 2024 and continued to remain on a strong footing this year.

The U.S. dollar index breached the crucial 109-mark. The uptrend in the American currency was underpinned by expectations of fewer rate cuts and a view that the U.S. economy will continue to outperform its peers globally.

At the interbank foreign exchange, the Rupee opened on a weak note and sank to an intra-day low of 85.80 and its high of 85.73 against the American currency. “The local unit settled for the day at a record low of 85.79 (provisional), registering a fall of four paise over its previous close. Reports of RBI selling U.S. dollars supported the Rupee at lower levels,” traders said.

On Thursday (January 2, 2025), the Rupee depreciated 11 paise to close at a record low of 85.75 against the dollar. On December 27, 2024, the local currency touched its lifetime intra-day low of 85.80 against the greenback.

Traders said the market will keep its focus on U.S. President-elect Donald Trump’s policies, which could boost growth but might also increase price pressures and this would keep the U.S. Fed on hold for longer on interest rate cuts.

“We expect the Rupee to trade with a negative bias on a strong U.S. dollar and demand for Dollar from importers. FII outflows may also put pressure on the Rupee. However, any further intervention by the RBI may support rupee at lower levels,” Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said. “USD-INR spot price is expected to trade in a range of 85.60-86.00,” Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.33% lower at 109.03. Brent crude, the global oil benchmark, fell 0.43% to $75.60 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex settled at 720.60 points or 0.90%, down at 79,223.11 points, while the Nifty was lower by 183.90 points or 0.76% at 24,004.75 points.

Foreign institutional investors (FIIs) purchased ₹1,506.75 crore in the capital markets on a net basis on Thursday (January 2, 2025,) according to exchange data.

At the interbank foreign exchange market, the local unit opened at 83.56 and gained further ground to trade at 83.49 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level. File
| Photo Credit: V.V. Krishnan

The rupee appreciated 8 paise to 83.49 against the U.S. dollar in early trade on June 27, as crude oil prices retreated from their elevated levels.

Forex traders said the strength of the American currency in the overseas market and foreign fund outflows weighed on the local unit and restricted the upmove.

At the interbank foreign exchange market, the local unit opened at 83.56 and gained further ground to trade at 83.49 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level.

On June 26, the rupee depreciated 14 paise against the U.S. dollar and settled at 83.57.

“Stronger fundamentals such as stable inflation, accelerated economic growth, higher business activity, and a controlled Current Account Deficit offer a counterbalance supporting the rupee. Additionally, continuous RBI intervention has also helped prevent significant rupee depreciation,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.10% at 105.94.

Brent crude futures, the global oil benchmark, were trading 0.20% lower at $85.08 per barrel.

Brent oil prices slid after U.S. inventory build-up fuelled fears about a slow demand from the U.S. Worries about a potential expansion of Gaza Hostilities disrupting Middle East supplies capped the decline, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

In the domestic equity market, the 30-share BSE Sensex declined 38.81 points, or 0.05%, to 78,635.44 points. The broader NSE Nifty fell 15.20 points, or 0.06%, to 23,853.60 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on June 26, as they offloaded shares worth ₹3,535.43 crore, according to exchange data.

Representational image only.
| Photo Credit: The Hindu

The Rupee was trading in a narrow range and appreciated three paise to 83.25 against the U.S. dollar in early trade on October 19, amid a negative trend in domestic equities.

Forex traders said the Rupee is trading in a narrow range as sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 83.26 against the dollar and then touched an early high of 83.25, registering a gain of three paise over its previous close. On Wednesday, the Rupee settled at 83.28 against the U.S. dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% higher at 106.60. Brent crude futures, the global oil benchmark, fell 0.55% to $91 per barrel.

Forex traders said crude oil prices fell as markets await further development from the Israel-Hamas war, while focus remained on upcoming signals from the U.S. Fed.

In the domestic equity market, the 30-share BSE Sensex was trading 435.23 points or 0.66% lower at 65,441.79. The broader NSE Nifty declined 131.00 points or 0.67% to 19,540.10.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on October 18 as they sold shares worth ₹1,831.84 crore, according to exchange data.

“FPIs continued their relentless selling in stocks and this buying of dollars from oil companies who due to steep rise in oil prices have been on the U.S. dollar buy side for the last one month keeping rupee in range as RBI sold dollars,” Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors LLP, said.

Representational image.
| Photo Credit: The Hindu

The Rupee recovered from its all-time low levels and appreciated by seven paise to 83.06 against the U.S. dollar in early trade on August 22, as the American currency retreated from its elevated levels.

Forex traders said the Rupee is trading in a narrow range as selling pressure by foreign investors dented sentiments, while the weak tone in the U.S. dollar and positive domestic markets cushioned the downside.

At the interbank foreign exchange, the domestic unit opened at 83.07, then touched a high of 83.06 against the American currency, registering a rise of seven paise over its last close. On Monday, the Rupee depreciated by three paise and settled for the day at an all-time low of 83.13 against the U.S. dollar.

“Rupee in the last one week has witnessed quite a bit of action but in the last couple of sessions it is consolidating in a narrow range and volatility has been low,” said Gaurang Somaiya forex and bullion analyst, Motilal Oswal Financial services.

Mr. Somaiya further added that the U.S. dollar too is retracing from higher levels after witnessing its longest winning streak in the last 15 months as it closed for the straight six weeks following safe haven buying on the back of uncertainty in China and better-than-expected economic numbers from the U.S.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.12% to 103.17. Brent crude futures, the global oil benchmark, fell 0.17% to $84.32 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 127.81 points or 0.20% higher at 65,343.90. The broader NSE Nifty advanced 41.90 points or 0.22% to 19,435.50.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth ₹1,901.10 crore, according to exchange data.