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The Indian Rupee fell to a record low of 89.49 against the US Dollar, pressured by strong US data, Fed rate expectations, crude oil prices, and capital outflows. While exporters may gain, importers face rising costs. The RBI may intervene, but global headwinds continue to challenge currency stability.
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The Indian Rupee (INR) tumbled to a record low of 89.49 against the US Dollar on Monday, December 1, 2025, marking its weakest level ever. The sharp depreciation reflects mounting global pressures and domestic challenges, raising concerns for import-heavy sectors and inflationary trends.
Key highlights of the development:
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The rupee’s slide past 89.49/USD underscores persistent foreign capital outflows and heightened demand for the dollar amid global uncertainty.
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Analysts attribute the fall to stronger US economic data, expectations of prolonged higher interest rates by the Federal Reserve, and geopolitical tensions driving investors toward safe-haven assets.
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Rising crude oil prices and India’s widening current account deficit have further weighed on the currency.
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Exporters may benefit from a weaker rupee, but importers—particularly in energy and electronics—face higher costs, potentially fueling inflationary pressures.
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The Reserve Bank of India (RBI) is expected to intervene selectively to stabilize volatility, though sustained global headwinds could limit its ability to reverse the trend.
This record low highlights the rupee’s vulnerability in a dollar-dominated global economy, with policymakers balancing growth priorities against currency stability.
Sources: Reuters, Economic Times, Business Standard
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