The Indian rupee declined to about 89.64 per US dollar on November 21, 2025, reaching a fresh all-time low. Over the past month, the currency has fallen from approximately 88 to its current level, a decrease of around 1.8%.

According to reports, the U.S. labour market surprised everyone again. Nonfarm Payrolls increased by 119,000 in September, well above the predicted 50,000. Although the unemployment rate rose slightly from 4.3% to 4.4%, traders focused on the stronger hiring figures. The message was clear: the U.S. labour market still has momentum, suggesting the Federal Reserve may not enact another rate cut in December. With expectations of an easing in scale back, the dollar regained strength and appreciated against major currencies.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd, said, “The rupee fell to an all-time low of 89.48 against the U.S. dollar on Friday, dragged down by weak global risk sentiment and uncertainty surrounding the U.S.–India trade dispute."

Kalantri said that a steady dollar index, which extended gains above the crucial 100 mark following stronger-than-expected U.S. non-farm payroll data of 119,000 and hawkish Fed commentary on delaying rate cuts, further pressured the rupee. The currency is now among the weakest major Asian performers this year, as foreign investors have withdrawn $16.5 billion from Indian equities so far.

"Today’s USDINR weekly close above 89.20 is a negative signal for the rupee. We expect the rupee to weaken further towards 90.40 and 91 levels, while the key support remains at 88.45.”

Adding more momentum to the U.S. dollar was the sharp weakness in the Japanese yen, which fell to a 10-month low near 157.78 per dollar.

Investors hurried to sell Japanese assets amid concerns over a record stimulus package expected to be announced by Prime Minister Sanae Takaichi. The selloff drove borrowing costs in Japan to all-time highs, sending a warning signal through global markets," said Amit Pabari, MD and CEO of CrForex Advisors.

Since Prime Minister Sanae Takaichi was elected leader of the ruling party last month, the yen has depreciated by around 6%, and because the yen is a major part of the dollar index, its weakness helped strengthen the already firm U.S. Dollar.

And as the dollar gains strength worldwide, emerging-market currencies — including the rupee — naturally feel the pressure.

Pabari says, "Reserve Bank Governor Sanjay Malhotra reiterated that the central bank does not target any specific level for the rupee and highlighted the strength of India’s foreign exchange buffers. He stressed that the recent depreciation has been trade-related, largely tied to tariff issues with the United States — and importantly, expressed confidence that a “good trade deal” with Washington is close."