Tag: Rupee

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Rupee slips to all-time low of 89.76 against dollar

The Indian rupee dropped to a new all-time low of 89.76 per US dollar on December 1, even as the country posted an impressive 8.2% GDP growth for the July–September quarter.

The strong economic data lifted stocks to record highs and nudged the 10-year government bond yield up to 6.553%, near a one-week high. However, the growth did little to support the currency.

Since November 3, the currency has fallen nearly one full rupee against the dollar and is now one of the worst-performing major currencies of 2025, ahead of only the Turkish lira and Argentine peso.

Foreign investor sentiment remains weak. Overseas investors sold about $400 million worth of Indian equities on Friday, taking total outflows this year to more than $16 billion. Traders also said that the maturity of large positions in the non-deliverable forwards market added pressure on the rupee.

Meanwhile, data released on Friday showed the RBI’s forward book rising above $63 billion in October, indicating continued efforts to manage volatility, with state-run banks seen offering dollars intermittently. The maturity of large positions in the non-deliverable forwards (NDF) market also weighed on the currency, according to traders.

The rupee remains weighed down by the lack of progress on a US–India trade deal, higher importer demand for dollars and a balance-of-payments position that has turned less supportive.

Hopes for tariff relief faded after no concrete agreement emerged on reducing the steep 50% tariffs imposed on Indian exports.

India’s external sector continues to face pressure, with the merchandise trade deficit hitting an all-time high in October, further dampening sentiment and adding to downward pressure on the rupee.

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Rupee slips to ₹89.43 against US dollar

The Indian rupee weakened by 7 paise on Thursday, trading at ₹89.43 against the US dollar in early market hours. This marks a continued period of volatility for the currency, which has been grappling with multiple domestic and global factors.

Rising crude oil prices are a major factor putting pressure on the rupee. India imports most of its oil needs, and higher global crude rates increase the demand for US dollars, pushing the local currency lower. Importers continue to buy dollars to pay for goods and raw materials, adding to the rupee’s downward pressure.

While foreign fund inflows into Indian markets have provided some support, they have not been strong enough to offset the impact of rising oil prices and steady import demand. Analysts suggest that the rupee is likely to trade in a narrow range over the near term, as there are no major catalysts expected to push it significantly higher.

Currency markets are also influenced by global developments, including the strength of the US dollar and international trade dynamics. Any sudden shifts in oil prices or dollar demand could create short-term fluctuations.

Investors and businesses dealing in foreign trade are advised to monitor the rupee closely. A weakening currency can affect import costs, inflation, and overseas investments, making careful planning essential.

Overall, the rupee’s movement reflects the delicate balance between domestic economic factors and global market trends, highlighting the challenges in maintaining currency stability in the current environment.

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Rupee hits record low above ₹89

he Indian rupee tumbled past ₹89 against the US dollar on Friday, marking its lowest level ever and recording the steepest single-day fall since May.

Market watchers point to several factors driving the slide. A strong dollar, fueled by upbeat US economic data and diminishing chances of a Fed rate cut, has put pressure on emerging-market currencies. US sanctions on certain Indian firms involved in Iranian oil transactions have further spooked investors.

Domestically, a widening trade deficit, slowing exports, and surging imports, especially gold, are straining the currency. Foreign capital outflows, with investors pulling billions from Indian equities this year, have compounded the weakness.

Analysts expect the rupee could test ₹90 or higher if these pressures continue. The Reserve Bank of India intervened after the ₹89 threshold was breached, though its governor reiterated there is no fixed target for the rupee.

For businesses, a weaker rupee raises import costs, especially for oil, machinery, and technology, while exporters face a mixed picture due to global demand constraints. Consumers may also feel the impact as imported goods, overseas travel, and dollar-denominated payments become costlier.

The rupee’s historic slide highlights India’s exposure to global market volatility and domestic trade pressures. Without a shift in these dynamics, analysts warn the currency could remain under pressure in the near term, keeping businesses and markets on alert.

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