The Indian rupee reached a psychological milestone by hitting the 90-per-dollar mark during intraday trading but ultimately closed at an all-time low of 89.95 against the US dollar on Tuesday, a decline of 42 paise from the previous close. The drop was influenced by persistent short-covering by speculators and continuous demand from importers for the US currency.
Forex traders indicated that a combination of factors, including foreign fund outflows from equities and ongoing uncertainty regarding the Indo-US trade agreement, is contributing to fragile investor sentiment.
In interbank foreign exchange trades, the rupee began the day at 89.70 but quickly lost ground, falling to a record intraday low of 90.00, which marked a decrease of 47 paise from its previous closing value. By the conclusion of trading on Tuesday, the rupee was positioned at 89.95, down 42 paise from the previous day’s close.
On Monday, the rupee had also depreciated, losing eight paise to finish at 89.53 against the dollar. Anindya Banerjee, Head of Commodity and Currency at Kotak Securities, noted that the 90 level serves as a significant psychological barrier, likely holding numerous buy-stop orders. He stressed the importance of the Reserve Bank of India (RBI) maintaining a proactive stance below the 90 mark to prevent the market from transitioning into a higher trading phase, potentially moving towards 91.00 or higher.
Banerjee further emphasized the need for the central bank to deter speculators from developing a one-sided market trend, which could inadvertently increase volatility in USD-INR rates.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was trading 0.06% higher at 99.41. In commodities, Brent crude, the global oil benchmark, was down by 0.25% to $63.03 per barrel in futures trading.
From a technical standpoint, the key support levels for the rupee are identified between 88.80 and 89.00, with immediate resistance at 90.00 and the next significant hurdle at 91.00. Banerjee cautioned that a decisive daily close above 90 could attract new speculative inflows and energize momentum traders.
On the domestic equity front, the Sensex fell by 503.63 points to close at 85,138.27, while the Nifty declined by 143.55 points to settle at 26,032.20. According to exchange data, Foreign Institutional Investors sold equities worth ₹1,171.31 crore on Monday.
Published on December 2, 2025.
