The Indian rupee closed at 89.87 per US dollar on December 2, 2025, down 0.36 percent on the day. On the inter-bank order matching system, the rupee briefly touched 90 per dollar, marking a historic low. Persistent foreign fund outflows and strong dollar demand pressured the currency.
India’s currency markets witnessed heightened volatility as the rupee slipped to a record low against the US dollar. According to trading data, the rupee closed at 89.87 per dollar, while intraday trades saw it weaken to 90 on the inter-bank order matching system. Forex dealers attributed the fall to strong dollar demand from corporates and importers, coupled with foreign portfolio investor outflows and elevated crude oil prices.
Key highlights from the announcement include
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The rupee closed at 89.87 per US dollar, down 0.36 percent on the day.
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On the inter-bank order matching system, the rupee briefly touched 90 per dollar.
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Persistent foreign fund outflows added pressure on the currency.
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Strong dollar demand from corporates and importers weighed on sentiment.
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Elevated crude oil prices further dented investor confidence.
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Analysts note that the rupee’s weakness reflects global dollar strength and domestic macroeconomic pressures.
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The fall marks the rupee’s lowest level ever, underscoring challenges for policymakers in stabilizing currency markets.
The rupee’s slide highlights the impact of global financial conditions on emerging market currencies. With crude prices elevated and foreign investors cautious, India’s currency markets may continue to face volatility, prompting close monitoring by the Reserve Bank of India.
Sources: Eurostat, Mid-Day, Deccan Herald, Reuters