Rupee below 90: The slumped past the psychologically important 90 per US dollar mark on Wednesday, December 3, to a fresh record low.
The rupee weakened to a low of 90.13 per , eclipsing its previous all-time low of 89.9475 hit on Tuesday. The domestic currency opened at 89.91 against the greenback but soon slipped below the 90 per dollar mark.
Multiple pressures are weighing on the rupee, including the trade and portfolio flow weakness and lingering uncertainty over the , which has kept the sentiment fragile. Early signs of the yen carry trade unwind are also causing broader Asian FX pressure.
In just two trading sessions of December, FPIs have offloaded shares worth ₹4,335 crore, taking the year-to-date outflows to ₹148,010 crore. Meanwhile, India’s trade deficit has swelled to a record $41.7 billion in October 2025. This widening deficit was driven largely by a dramatic surge in gold imports, which nearly tripled to $14.7 billion, and a sharp 28% decline in exports to the US to $6.3 billion in October versus May.
Sensex, Nifty decline amid rupee weakness
Amid a declining rupee, the Indian benchmark indices also came under pressure, stepping further away from all-time highs hit earlier this week. The slipped below 26,000, and the shed nearly 200 points.
A real concern now, which has contributed to the slow drifting down of the market, is the continued depreciation in the rupee and fears of further depreciation since the RBI is not intervening to support the rupee, said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
This concern is forcing the FIIs to sell despite the improving fundamentals of rising corporate earnings and strong rebound in , he added.
The rupee depreciation, experts believe, will halt and even reverse when the India-US trade deal materialises, which is likely this month. “A lot, however, will depend on the details of the tariffs to be imposed on India as part of the deal,” the Geojit analyst added.
So far in 2025, the rupee has fallen 5%, making it the worst-performing Asian currency this year.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.