The Indian rupee depreciated by 9 paise to close at 89.96 (provisional) against the US dollar on Wednesday, reflecting a negative trend in domestic equity markets and persistent foreign fund outflows.
Forex traders noted that investors are adopting a wait-and-watch approach, seeking clarity from the US Federal Reserve before making significant moves. Additionally, traders are anticipating developments from the ongoing US-India trade negotiations, which could provide support for the rupee in the near future.
In the interbank foreign exchange market, the rupee opened at 90.00, declined to an intra-day low of 90.10, and ultimately settled at 89.96 (provisional), marking a decrease of 9 paise from its previous close. On Tuesday, the rupee had appreciated by 18 paise to end at 89.87 against the dollar.
Anuj Choudhary, a research analyst at Mirae Asset ShareKhan, stated, “We expect the rupee to trade with a negative bias due to weak domestic markets and foreign institutional investor outflows, which continue to exert pressure on the currency. Any delays in the trade deal between India and the US may further impact the rupee negatively.”
Commerce and Industry Minister Piyush Goyal confirmed on Wednesday that negotiations with the US regarding a proposed bilateral trade agreement are progressing. “Talks are continuously progressing with them. We are moving forward towards a bilateral trade agreement,” he stated.
A delegation led by Deputy US Trade Representative Rick Switzer is currently in New Delhi for two days of trade discussions with his Indian counterpart, Rajesh Agrawal. The US chief negotiator, Assistant US Trade Representative for South and Central Asia Brendan Lynch, will also engage with India’s chief negotiator and Joint Secretary in the Department of Commerce, Darpan Jain.
Choudhary added that a weak trend in crude oil prices and a decline in the US dollar could provide some support for the rupee at lower levels. Investors are expected to remain cautious ahead of the upcoming Federal Open Market Committee (FOMC) meeting. The USD/INR spot price is projected to trade within a range of 89.70 to 90.30.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.09 percent at 99.12. Brent crude, the global oil benchmark, saw a 0.26 percent increase, trading at USD 62.10 per barrel in futures.
On the domestic equity front, the Sensex fell by 275.01 points to close at 84,391.27, while the Nifty declined by 81.65 points to settle at 25,758. Data indicated that foreign institutional investors sold equities worth Rs 3,760.08 crore on Tuesday.
Published on December 10, 2025.
