The rupee hit a fresh all-time low of 90.25 against the US dollar during intra-day trading on December 3, 2025, sliding 29 paise from its previous close. Persistent foreign investor outflows continued dollar buying by banks and a weak equity market added pressure on the currency, forex traders said.
The local unit opened at 89.96 at the interbank foreign exchange before weakening further to 90.25. On December 2, the rupee had already logged its lowest-ever closing level of 89.96, dragged down by aggressive short-covering and strong demand for dollars from importers.
Traders said the uncertainty around the delayed India–US trade deal has also contributed to the downward pressure on the currency.
The Monetary Policy Committee began its meeting on December 3, with the interest-rate decision scheduled for December 5. Markets are cautious ahead of the announcement, followed by the US Federal Reserve’s decision on December 10.
Analysts suggested that a rate cut by the RBI could trigger further rupee selling, especially in an environment of tight dollar liquidity and sustained capital outflows.
The dollar index was trading 0.13% lower at 99.22, providing only mild relief. Brent crude futures were nearly flat at $62.43 per barrel, a level that offers some stability for India’s import bill but not enough to offset broader currency pressures.
