The Indian rupee breached the 90-a-dollar threshold for the first time, closing at an all-time low of 90.21 (provisional) on Wednesday, a decline of 25 paise from its previous close. This depreciation was attributed to continued foreign fund outflows and rising crude oil prices.
Traders noted that uncertainty surrounding the India-US trade deal and the Reserve Bank of India’s (RBI) lack of intervention contributed to the downward pressure on the rupee. The currency opened at 89.96 against the US dollar and reached a record intraday low of 90.30 before settling at 90.21.
Previously, the rupee had settled at a historic low of 89.96 on Tuesday, down 43 paise, as speculators engaged in short-covering and importers maintained high demand for the US dollar. Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, remarked, “The rupee hit a fresh all-time low of 90.30 amid selling pressure from foreign investors and a surge in crude oil prices. Uncertainty over the announcement of the India-US trade deal has also weighed on the rupee. However, a weak US dollar index prevented a sharper decline.”
Choudhary added that the rupee is expected to trade with a slight negative bias due to persistent Foreign Institutional Investor (FII) outflows and elevated crude oil prices, although a weak dollar and increasing prospects of a Federal Reserve rate cut in December may provide support at lower levels. The USD-INR spot price is projected to trade within a range of ₹89.80 to ₹90.50.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, noted, “The RBI allowed the rupee to cross 90 easily, letting it fall to 90.30 before stepping in.”
In related economic news, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 59.8 in November from 58.9 in October, buoyed by new business growth. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.20 percent at 99.16. Brent crude, the global oil benchmark, was trading 0.91 percent lower at $63.02 per barrel.
On the domestic equity markets, the Sensex declined by 31.46 points to close at 85,106.81, while the Nifty fell by 46.20 points to settle at 25,986. Foreign Institutional Investors sold equities worth ₹3,642.30 crore on Tuesday, according to exchange data.
Published on December 3, 2025.
