After reaching a new record low earlier in the day, the Indian rupee saw some rebound on December 4. In relation to the US dollar, the Indian rupee increased 52 paise from its low of the day to trade at 89.92.
The rupee fell to a record low of 90.42 per dollar earlier in the day. It is now Asia’s worst-performing currency, down 5.5% year over year.
Even though the rupee fell to new all-time lows in the July–September quarter of FY26, India’s GDP increased by 8.2%, demonstrating a discrepancy between the robust domestic economy and the poor foreign demand.
When will the rupee be able to recover?
India’s Chief Economic Advisor V Anantha Nageswaran said on Wednesday, “I am not losing sleep over it,” in reference to the decline of the rupee. He stated that inflation has not been impacted by the rupee’s decline and that he anticipates the currency’s recovery in 2026.
The rupee will recover some of its lost territory versus the US dollar during the next three months, according to a Reuters survey of foreign exchange experts. But this depends on the US and India reaching an agreement on their much anticipated trade agreement.
Analysts predict that Rupee will face pressure in the near team:
However, some economists believe that the rupee’s poor performance may persist in the foreseeable future. According to Rahul Gupta, CBO of Ashika Group, the rupee is expected to be under pressure and trade around the 89.50–91.20 range in the near future, particularly if crude oil prices continue to rise and foreign investors continue to be risk conservative.
“A significant rebound would need an improvement in India’s export momentum, clarity on global rate-cut cycles, and a resurgence of foreign inflows. The expert said, “Until then, the currency is projected to remain weak but orderly, led by limited RBI intervention.”
According to Amit Pabari, managing director of CR Forex Advisors, the fact the rupee broke above the 90-mark yesterday indicates that the pressure has not subsided. He said, “The move really indicates that pressure will continue, with the pair perhaps sliding into the 90.70–91 zone in the short future.”
