On Thursday, December 4, 2025, the Rupee recovered from its all-time low levels and gained 19 paise to settle at 89.96 versus the US dollar due to rumors of the Reserve Bank of India’s alleged involvement and weakening in the US dollar index.
The Automatic statistics Processing non-farm payroll statistics came in well below expectations, according to forex dealers, and the weakening in the U.S. dollar index supported the Rupee at lower levels.
Due to selling pressure from international investors and increasing crude oil prices, the Rupee began the day weak and reached a new all-time low of 90.43. The Rupee has also suffered due to the postponement of the announcement of the trade agreement between the United States and India.
The Rupee began trading at 90.36 on the interbank foreign exchange market. In early transactions, it further declined to a new low of 90.43 versus the US dollar, shedding 28 paise from its closing level.
The Rupee ended the trading session on Thursday, December 4, 2025, at 89.96 (provisional), up 19 paise from its previous finish.
The Rupee hit a new all-time low of 90.15 against the US dollar on Wednesday, December 3, 2025, breaking through the 90-a-dollar barrier for the first time.
On Wednesday, December 3, Chief Economic Advisor V. Anantha Nageswaran said that exports and inflation are unaffected by the declining Rupee. A declining Rupee facilitates exports but raises the cost of imports.
Mr. Nageswaran said at an event on Wednesday (December 3, 2025) that import-dependent industries including gems and jewelry, petroleum, and electronics may face reduced advantages due to an increase in input prices, putting pressure on inflationary expectations.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was down 0.01% at 98.84. In futures trading, Brent crude, the benchmark for oil worldwide, increased by 0.22% to ₹62.81 a barrel.
“We anticipate a poor tone in the local markets and ongoing selling pressure from FIIs, which will cause the Rupee to move negatively. Anuj Choudhary, a research analyst with Mirae Asset ShareKhan, said that rising crude oil prices might potentially put pressure on the Rupee.
Forex dealers said that a number of factors, including the withdrawal of foreign funds from stocks and the ongoing uncertainty surrounding the trade agreement between the United States and India, are maintaining the fragility of investor attitude.
According to Mr. Choudhary, “weakness in the U.S. dollar after a poor employment report and growing prospects of a rate decrease by the Fed in December may support the Rupee at lower levels.”
“The Rupee may benefit from any more Central Bank action. Weekly U.S. jobless claims data may also serve as a guide for traders. “USD-INR spot pricing is projected to trade in a range between 89.65 and 90.50,” Mr. Choudhary said. “Investors remain cautious ahead of RBI’s monetary policy meeting this week.”
Macroeconomically speaking, India’s GDP has already unexpectedly increased, and the most recent Hongkong and Shanghai Banking Corporation Limited (HSBC) India Services Purchasing Managers’ Index (PMI), a crucial indicator of whether businesses are expanding or contracting, increased to 59.8 in November thanks to robust new orders.
On Friday, December 5, 2025, the RBI governor Sanjay Malhotra’s six-member rate-setting panel will make its judgment public.
The conference is happening in the context of declining inflation, increasing GDP growth, the Rupee surpassing 90 versus the US dollar, and persistent geopolitical concerns.
Regarding the local equities market, the Nifty increased 47.75 points to 26,033.75, while the Sensex increased 158.51 points to close at 85,265.32.
Exchange data shows that on Wednesday, December 3, 2025, foreign institutional investors sold stocks valued at ₹3,206.92 crore on a net basis.
