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Rupee Plunges Near Record Low At 89.75! Is India’s Currency On The Edge?

The Indian rupee nears record lows at 89.75 against the dollar amid US-India trade uncertainties, corporate dollar demand, and RBI interventions, ahead of the crucial December 3–5 monetary policy meeting.

Published By: Aishwarya Samant
Published: December 2, 2025 10:12:08 IST

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Rupee Nears All-Time Low

The Indian rupee (INR) moved closer to its all-time low, decreasing by 22 paise to 89.75 against the dollar in early trading on Tuesday. Even though this development may be alarming, do not get overly concerned at this point! The fall, to a large extent, mirrors the still-nonexistent US-India trade deal, which has momentarily obscured India’s exemplary economic growth. Visualize it as just a tiny shake on an otherwise smooth ride.

Investors and companies are very watchful, but with strong GDP figures and preemptive RBI actions, the rupee is not going to be a lost case, just an obstacle in its way.

Recent Rupee Performance

  • On Monday, the rupee fell to 89.73 against the US dollar.

  • This drop pushed it below its previous record low of 89.49 reached about two weeks ago.

  • Since November 3, the currency has depreciated by over a rupee against the US dollar.

Rupee Nears All-Time Low: Context Ahead of RBI Meeting

The decline of the rupee is catching the spotlight just prior to the RBI’s Monetary Policy Committee meeting which takes place from December 3 to 5, 2025. The currency appears to be trying the patience of the investors, notwithstanding the robust GDP growth of 8.2% in Q2, consider it as a tiny financial drama unfolding before the main policy show!

Whats Driving The Rupee’s Decline?

  • RBI Intervention: The Reserve Bank of India may be selling US dollars to prevent the rupee from slipping below 90.
  • Corporate Demand: High demand for dollars from Indian companies is putting pressure on the currency.
  • Export Supply: Inconsistent forex inflows from exporters contribute to rupee weakness.
  • Speculative Trading: Traders’ speculative positions in the currency market are intensifying volatility.

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