Rupee approaches 90 mark against Dollar after touching record low in today’s trade

Indian Rupee nosedived to record lows of 89.66 against the Dollar today extending the weakness the currency had been exhibiting since June this year. Rupee depreciated 90 paise against the dollar since November 3 and remained the worst performing currencies against the dollar this year, only next to Turkish Lira and Argentine’s Peso.

Several factors have been attributed to the continuous downward spiral in the currency against the dollar. Dealers are of the view that the continuous downward spiral in the value of the currency against the Greenback is attribute capital outflows and the uncertainty over the US-India trade deal. They point out that the current account deficit is not a concern as of now and is under manageable limits.

“With no clear progress on the India–US trade deal and uncertainty still dominating sentiment, rupee weakness may continue toward the 90.00 mark. Immediate resistance for the rupee now stands at 89.20, while the bias remains firmly on the downside," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.      

According to ministry of finance, on the portfolio side, October recorded a modest recovery, with net FPI inflows of USD 4 billion, led by a positive shift in equity flows. “However, cumulative outflows across all asset classes for April to Nov 2025 (up to 25 Nov) amounted to $205 million,” the ministry’s economic review for the month of October said.

“Looking at the longer trend, the INR depreciated by 3.5 per cent against the US dollar from the end of March to the end of October 2025, demonstrating a gradual weakening consistent with broader emerging-market currency trends,” it said.

FII selling Indian equities is also putting pressure on the currency. “The ministry also said that the DII’s have been holding The DIIs have consistently maintained their position as net buyers in Indian equities, effectively countering FPI selling and reinforcing the strength of the domestic market,” said the ministry.  

RBI does not intervene to maintain a particular level of the Rupee against the Dollar and intervenes only to manage excess volatility. It may be be noted that some measures were taken in October to prevent the rupee slide. Those included promoting the use of domestic currency for cross-border settlements, announced on October 1, 2025, allowing other measures. It also allowed banks to lend in Indian Rupees to non-residents from Bhutan, Nepal and Sri Lanka for bilateral trade.