The Indian rupee depreciated by 17 paise, reaching 90.11 against the US dollar in early trading on Thursday. This decline was attributed to prevailing risk-averse market sentiment and an increased demand for US dollars from importers, which negatively impacted investor confidence.
Forex traders indicated that the rupee is expected to display a negative bias due to muted domestic market conditions and ongoing foreign fund outflows. Additionally, investors are looking for cues from the US-India trade discussions, which could potentially support the rupee in the near future.
At the interbank foreign exchange market, the rupee began trading at 89.95 per dollar but quickly lost ground, falling to 90.11 and marking a decrease of 17 paise from its previous closing rate of 89.87.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, remarked, “The US trade team has said they have received the best proposal from India, which could bode well for the rupee; however, overall, we may see it weaken under short positions once the trade deal is finalized.”
US Trade Representative Jamieson Greer noted that the US has received “the best” offers from India concerning the proposed trade agreement, coinciding with the start of two days of discussions between the two nations. Greer mentioned that there is resistance in India regarding specific row crops and other agricultural products, including corn, soybeans, wheat, and cotton—items essential to the US economy.
These statements are significant as both countries aim to conclude the initial phase of a Bilateral Trade Agreement (BTA).
The projected range for the USD/INR exchange rate for the day is between 89.70 and 90.20, with foreign portfolio investors continuing to sell in the Indian market, according to Bhansali.
Meanwhile, the dollar index, which measures the currency’s strength against a basket of six others, was trading 0.15 percent lower at 98.63 following the Federal Reserve’s interest rate cut and its relatively dovish guidance.
Brent crude, the global oil benchmark, was trading slightly higher at ₹62.35 per barrel in futures trading. On the domestic equity front, the 30-share benchmark index Sensex gained 80.15 points, reaching 84,471.42, while the Nifty rose by 34.40 points to 25,792.40.
Foreign Institutional Investors sold equities worth ₹1,651.06 crore on Wednesday, according to exchange data.
Published on December 11, 2025.
