Overview
- The currency hit 90.00 intraday on Dec. 2 and settled at 89.95, its weakest close on record, after Monday’s lifetime low near 89.8.
- Bankers and dealers reported heavy dollar demand from importers and corporates, with stop-loss orders accelerating the slide once 89.50 broke.
- October’s merchandise trade deficit widened to about $41.7 billion, and foreign investors have withdrawn roughly $16 billion from equities this year.
- Market participants said RBI dollar sales helped prevent a sustained break above 90, aligning with the IMF’s reclassification of India’s regime as crawl-like.
- Analysts pointed to higher US tariffs, stalled US-India trade talks and firm US yields and dollar strength as ongoing headwinds, leaving the rupee down about 4.8% in 2025 and over 6% year on year.