Reserve Bank Governor Sanjay Malhotra on Friday (December 5, 2025) said the central bank does not target any band for the rupee in the forex market, and allows the domestic currency to find its own correct level.

The Governor’s statement came at a time when the rupee breached the 90-mark against the U.S. dollar, and is hovering near that level.

“We don’t target any price levels or any bands. We allow the markets to determine the prices. We believe that markets, especially in the long run, are very efficient. It’s a very deep market,” he said while replying to a question on rupee depreciation at a post-monetary policy press meet.

Mr. Malhotra said fluctuations in the market keep taking place, and the effort of the RBI is always to reduce any abnormal or excessive volatility.

“And that is what we will continue to endeavour,” he added.

In its bi-monthly monetary policy, the RBI announced three-year USD/INR Buy Sell swaps of $5 billion this month.

When asked if the USD-INR is aimed at checking rupee depreciation, Mr. Malhotra said, “It is a liquidity measure. It is not to support the rupee”.

Stressing that RBI does not target any level of rupee against the U.S. dollar, he said the central bank allows “the rupee find its correct position, correct level”.

The Governor further said the country has sufficient foreign exchange reserves and the current account is manageable, and given the strong fundamentals of the economy, the country should witness good capital flows going forward.

Foreign portfolio investment (FPI) to India recorded a net outflow of $0.7 billion in 2025-26, so far (April-December 03), due to unabated withdrawal from the equity segment.

Flows under external commercial borrowings and non-resident deposit accounts moderated compared to the last year.

As of November 28, 2025, India’s foreign exchange reserves stood at $686.2 billion, providing a robust import cover of more than 11 months.

Mr. Malhotra further said that having reduced the policy rate (repo) by 25 basis points, the focus will now be on transmission of the rate cut to the real economy.

In a range-bound trade, the rupee settled 2 paise lower at 88.61 (provisional) against the U.S. dollar on Tuesday (November 18, 2025) in line with negative sentiment in equity markets.

The emergence of foreign fund inflows, a weak greenback and lower crude oil prices helped the Indian currency resist downward pressure, traders said.

At the interbank foreign exchange market, the rupee opened at 88.67 and moved in a tight range of 88.69 and 88.58 against the dollar. The unit finally settled at 88.61 (provisional), down 2 paise from its previous closing level.

Investors were concerned about increasing import bills and the widening trade deficit of the country.

Traders were closely watching the progress on the proposed India-U.S. trade deal as well as the domestic PMI data to be released later this week.

On Monday, the rupee settled 7 paise higher at 88.59 against the U.S. dollar.

The rupee gained support from weak crude oil prices and optimism over trade tariffs to restrict its slide against the U.S. currency, according to traders.

“Markets may remain volatile as the U.S. government reopening would lead to economic data inflows. The US non-farm payrolls report is expected to be released on Thursday,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06% lower at 99.42.

Brent crude, the global oil benchmark, declined 0.37% to $63.96 per barrel in futures trade.

On the domestic equity market front, Sensex fell 277.93 points or 0.33% to settle at 84,673.02, while Nifty tumbled 103.40 points or 0.40% to 25,910.05.

Foreign institutional investors bought equities worth ₹442.17 crore on Monday, according to exchange data.

The latest government data released on Monday showed India’s exports contracted 11.8% to $34.38 billion in October on account of the impact of high tariffs by the U.S., while the trade deficit widened to a record high of $41.68 billion, mainly due to a jump in gold imports.

The country’s imports jumped 16.63% to $76.06 billion due to high inbound shipments of the yellow metal, silver, cotton raw/waste, fertiliser, and sulphur.

In September, the trade gap widened to $31.15 billion, the highest in over a year.

While gold imports rose about 200% to $14.72 billion, silver rose 528.71% to $2.71 billion during October.

Crude oil imports dipped to $14.8 billion in October from $18.9 billion in the same month last year.

The rupee pared intraday losses to settle 3 paise higher at 88.63 (provisional) against the U.S. dollar on Monday (November 17, 2025), tracking firm domestic equity markets and lower global crude oil prices.

However, a strong greenback against major currencies overseas and foreign fund outflows weighed on the domestic unit, according to forex traders.

At the interbank foreign exchange market, the rupee opened at 88.70 and hit the intra-day high of 88.56 and the low of 88.73 against the dollar.

The unit finally settled at 88.63 (provisional) against the dollar, registering a gain of 3 paise from its previous closing level.

On Friday (November 14, 2025), the rupee settled 4 paise higher at 88.66 against the U.S. currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.29% higher at 99.29.

Brent crude, the global oil benchmark, was trading 0.81% lower at $63.87 per barrel in futures trade.

On the domestic equity market front, Sensex soared 388.17 points or 0.46% to settle at 84,950.95, while Nifty climbed 103.40 points or 0.40% to 26,013.45.

The latest government data released on Monday (November 17, 2025) showed India’s exports contracted 11.8% to $34.38 billion in October. Imports, on the other hand, jumped 16.63% to $76.06 billion, widening the trade deficit to $41.68 billion.

Foreign institutional investors sold equities worth ₹4,968.22 crore on Friday (November 14, 2025), according to exchange data.

The rupee depreciated by 8 paise to close at 88.27 against the U.S. dollar on Tuesday (October 28, 2025) on weak domestic stock markets and foreign fund outflows.

Forex traders said a weak U.S. dollar and softening of crude oil prices cushioned the downside.

Investors are also keeping a watch on the Federal Reserve’s policy decision on Wednesday (October 29) for further cues.

At the interbank foreign exchange market, the rupee opened at 88.34 and later traded in a range of 88.23 to 88.40 during the day. The local unit finally settled at 88.27 (provisional) against the greenback, registering a fall of 8 paise from its previous close.

On Monday (October 27), the rupee plunged 36 paise to close at 88.19 against the U.S. dollar.

“We expect the rupee to trade with a slight negative bias on weak domestic equities and month-end dollar demand from importers. However, optimism over the trade deal between India and the U.S. may support the rupee at lower levels,” said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.

Mr. Choudhary further noted that investors may remain cautious ahead of the U.S. FOMC meeting decision. USD/INR spot price is expected to trade in a range of 87.90 to 88.60, he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09% to 98.69.

Brent crude, the global oil benchmark, fell 1.74% to $64.48 per barrel in futures trading.

On the domestic equity markets front, Sensex declined 150.68 points to settle at 84,628.16, while the Nifty dipped 29.85 points to 25,936.20.

Foreign Institutional Investors sold equities worth ₹55.58 crore on Monday (October 27), according to exchange data.

Meanwhile, India’s crude oil imports from the United States climbed to their highest level since 2022 in October, a move seen as part of New Delhi’s effort to diversify supplies away from Russia and ease trade tensions with the Trump administration.

India’s crude imports from the U.S. reached 540,000 barrels per day as of October 27 – the highest since 2022, according to data from Kpler.

October is likely to close with near 575,000 bpd, and November looks to book around 400,000-450,000 bpd, per U.S. export data – a sharp jump from the year-to-date average of around 300,000 bpd.

The rupee fell 4 paise to an all-time low of 88.79 (provisional) against the U.S. dollar on Tuesday (September 30, 2025), pressured by sustained foreign capital outflows amid global trade uncertainties.

However, a steep fall in global crude oil prices, along with a weaker greenback, prevented a sharp decline in the local unit, according to forex traders.

The markets are also awaiting the Reserve Bank of India’s (RBI’s) Monetary Policy Committee decision, which will be announced on Wednesday (October 1).

At the interbank foreign exchange, the rupee opened at 88.73 against the dollar and traded in the range of 88.69-88.80 before settling at 88.79 (provisional), lower by 4 paise against its previous close.

The rupee consolidated in a narrow range and settled lower by 3 paise at 88.75 against the greenback on Monday.

“Constant pressure from FPIs buying dollars brought down the rupee, where the RBI seems to be present, supplying dollars. The rupee has remained vulnerable to the FPIs selling due to the trade trauma seen since August, when U.S. President Donald Trump applied 50% tariffs on Indian Exports,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The range for Wednesday (October 1) is expected between 88.50 and 89.00, he said.

The RBI meeting is taking place against the backdrop of ongoing geopolitical tensions and the U.S. imposing 50% tariffs on Indian shipments.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 97.79, lower by 0.11%.

Brent crude, the global oil benchmark, was trading 1.03% lower at $67.27 per barrel in futures trade.

On the domestic equity market front, Sensex dropped 97.32 points to settle at 80,267.62, while Nifty slipped 23.80 points to 24,611.10.

Foreign Institutional Investors offloaded equities worth ₹2,831.59 crore on Monday, according to exchange data.

Meanwhile, the U.S. has announced the imposition of a 100% tariff on branded or patented drugs entering the U.S. from October 1, except for pharmaceutical companies building manufacturing plants in the U.S.

Rupee consolidated in a narrow range and settled for the day lower by 7 paise at its all-time closing low of 88.79 (provisional) against U.S. dollar on Monday (September 29, 2025), on persistent foreign capital outflows and rise in risk-off sentiments.

Forex traders said rupee is hovering near its all-time low level as investors remained concerned over global trade uncertainties and impact of U.S. visa fee hike on India’s IT services exports.

Moreover, the Reserve Bank of India (RBI) policy meeting outcome on October 1, is expected to influence rupee and government bond movements.

At the interbank foreign exchange, the rupee opened at 88.69 against the U.S. dollar, and finally settled for the day with a loss of 7 paise at 88.79 (provisional), its lowest-ever closing level so far.

On Friday, the rupee rebounded from its all-time low to close 4 paise higher at 88.72 against the U.S. dollar.

The rupee fell to a fresh lifetime low of 88.76 against the American currency on Thursday (September 25).

“We expect the rupee to remain weak on weak domestic markets and elevated crude oil prices. Month-end dollar demand from importers may also pressurise the rupee. However, weakness in the U.S. dollar and any intervention by the RBI may support rupee at lower levels,” said Anuj Choudhary, Research Analyst Currency and commodities Mirae Asset ShareKhan.

Mr. Choudhary further added that traders may take cues from core pending home sales data from the U.S. and President Donald Trump’s speech. Investors will also watch out for the RBI’s MPC decision this week.

The Reserve Bank’s Monetary Policy Committee began its three-day deliberations amid expectations of status quo on the key interest rate, but some experts think that the central bank may settle for a 25 bps cut.

The decision of RBI Governor Sanjay Malhotra-headed six-member rate-setting panel will be announced on Wednesday (September 24). The meeting is taking place against the backdrop of ongoing geopolitical tensions and the U.S. imposing 50% tariffs on Indian shipments.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 97.96, lower by 0.19%.

Brent crude, the global oil benchmark, was trading 1.37% lower at $69.17 per barrel in futures trade.

On the domestic equity market front, the Sensex declined 61.52 points to settle at 80,364.94, while Nifty dipped 19.80 points to 24,634.90.

Foreign Institutional Investors offloaded equities worth ₹5,687.58 crore on Friday (September 26), according to exchange data.

Meanwhile, the US has announced the imposition of a 100% tariff on branded or patented drugs entering the U.S. from October 1, except for pharmaceutical companies building manufacturing plants in the U.S.

The exemption covers projects where construction has started, including sites that have broken ground or are under construction.

India’s forex reserves dropped $396 million to $702.57 billion for the week ended September 19, according to the RBI data.

In the previous reporting week, the overall reserves had jumped $4.698 billion to $702.966 billion.

The rupee recovered 15 paise from its all-time low level to 88.00 against the U.S. dollar in early trade on Wednesday (September 3, 2025) as persistent foreign fund outflows and dollar strength weighed on investor sentiments.

Forex traders said the rupee is trading near an all-time low, driven by risk-averse sentiments amid India-U.S. trade deal uncertainty.

Moreover, a muted trend in domestic equities further dented investors’ sentiments.

At the interbank foreign exchange market, the rupee opened at 88.15 against the U.S. dollar, then touched 88.00, registering a gain of 15 paise from its previous close.

On Tuesday (September 2, 2025), the rupee declined 5 paise to an all-time low of 88.15 against the U.S. dollar.

The rupee opened slightly on the positive side, but dollar buying could push it back lower, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

“With the Competitive Commission having cleared the $1.6 billion of shares bought by SMBC bank, we can soon expect the inflows to hit the market to keep rupee steady but within the range of 87.80 to 88.30 with a watch on the RBI as to whether it keeps a tab on 88.30,” Mr. Bhansali said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.48, higher by 0.09%. Brent crude, the global oil benchmark, was trading 0.27% lower at $68.95 per barrel in futures trade.

On the domestic equity market front, Sensex declined 153.28 points to 80,004.60 in early trade, while the Nifty dipped 46.4 points to 24,533.20.

Foreign Institutional Investors offloaded equities worth ₹1,159.48 crore on Tuesday (September 2, 2025), according to exchange data.

The rupee breached the 88-mark for the first time and closed at an all-time low of 88.19 (provisional) against the U.S. dollar on Friday (August 29, 2025), registering a sharp decline of 61 paise amid heightened Indo-US trade deal tensions.

Forex traders said the rupee is under persistent pressure amid the imposition of steep tariffs by the U.S. compounded with persistent foreign fund outflows and month-end dollar demand.

Moreover, a negative trend in domestic equities dented market sentiments.

At the interbank foreign exchange market, the rupee opened at 87.73 against the U.S. dollar, then lost ground and fell to an intra-day low of 88.33. The domestic unit settled for the day at an all-time low of 88.19 (provisional) against the greenback, registering a sharp fall of 61 paise over its previous close.

On Thursday, the rupee rose by 11 paise to close at 87.58 against the U.S. dollar.

This is the first time the rupee has breached the 88/U.S. dollar level. On February 10, 2025, the unit had witnessed an intra-day low of 87.95 and on August 5, 2025, the domestic unit had settled at 87.88 against the greenback.

“We expect the rupee to trade with a negative bias as additional trade tariffs on India by the US raise worries over India’s trade deficit. Weak domestic markets and selling pressure from FIIs may pressurise the rupee further,” said Anuj Chaudhary, Research Analyst Currency and commodities Mirae Asset ShareKhan.

The Reserve Bank of India, in its latest bulletin on Thursday, said persisting uncertainties related to the U.S. trade policies pose downside risk to the overall demand in the Indian economy, while the inflation outlook for the near-term has become more benign than anticipated earlier.

Commerce and Industry Minister Piyush Goyal on Friday said the government will soon announce various measures to expand the country’s domestic outreach and global foray, aiming to boost exports.

He also assured exporters of all support in dealing with the current global uncertainties at the trade front, which were caused by the imposition of high tariffs.

The U.S. has imposed a steep 50 per cent tariff on Indian goods entering America from August 27. This high duty is expected to impact exports of certain labour-intensive sectors like textiles, leather, footwear and shrimp.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.14% to 97.94.

“Dollar may continue to remain weak on rising rate cut expectations in September. Traders may take cues from prelim core PCE price index and personal spending data from the US. USD-INR spot price is expected to trade in a range of 87.90 to 88.70,” Chaudhary said.

Brent crude, the global oil benchmark, was trading 0.76% lower to $68.10 per barrel in futures trade.

On the domestic equity market front, Sensex dropped 270.92 points to settle at 79,809.65, while the Nifty declined 74.05 points to close at 24,426.85.

Foreign Institutional Investors offloaded equities worth ₹3,856.51 crore on Thursday, according to exchange data.

The rupee appreciated 23 paise to close at 87.36 (provisional) against the U.S. dollar on Monday (August 18, 2025), supported by strong domestic equities.

Forex traders said the Indian rupee traded on the positive territory on the GST reforms that Prime Minister Narendra Modi recommended in his August 15 address to the nation.

Forex traders said the uncertainty over trade tariffs issue between India and the U.S. is likely to keep market participants cautious.

At the interbank foreign exchange market, the rupee opened at 87.46 against the U.S. dollar, and touched an intraday low of 87.48 and a high of 87.33 and settled at 87.36 (provisional), registering a gain of 23 paise over its previous close.

On Thursday, the rupee settled lower by 12 paise at 87.59 against the U.S. dollar.

Forex and equity markets were closed on Friday on account of Independence Day.

PM Modi on Sunday said the Centre has circulated the draft of the next-generation GST reforms among states and sought their cooperation to implement the proposal before Diwali.

He said the reform in GST would benefit poor and middle-class people, as well as small and big businesses.

The present GST tax rates of nil/zero on essential food items, 5 per cent on daily use products, 12% on standard goods, 18% on electronics and services and 28% on luxury and sin goods will be replaced by two tax slabs of 5% and 18%, plus a special 40% top bracket for 5-7 demerit goods.

The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12% and 28% slabs.

Meanwhile, Brent crude prices rose 0.70% to $66.31 per barrel in futures trade.

Investors will monitor Federal Reserve Chair Jerome Powell’s comments at Jackson Hole this week for clues on the path of interest rate cuts in its next meeting in September, traders said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.14% to 97.98.

On the domestic equity market front, Sensex jumped 676.09 points to settle at 81,273.75, while the Nifty surged 245.65 points to 24,876.95.

Foreign Institutional Investors offloaded equities worth ₹1,926.76 crore on Thursday, according to exchange data.

On the domestic macroeconomic front, S&P on Thursday upgraded India’s sovereign credit rating to ‘BBB’ with a stable outlook after over 18 years, citing robust economic growth, political commitment for fiscal consolidation and ‘conducive’ monetary policy to check inflation.

The impact of U.S. tariffs on the Indian economy will be “manageable”, S&P said, adding that a 50% tariff on U.S. exports (if imposed) will not pose a “material drag” on growth.