The Indian rupee slipped past the 90-per-dollar mark for the first time on Wednesday, December 3, 2025, marking a historic low for the currency. The fall came during early trade as banks continued buying US dollars at higher levels and foreign investors pulled out money from Indian markets. Although global crude prices eased and the dollar index weakened slightly, these factors could not prevent the rupee’s slide.

1. Rupee Opens Weak and Hits Record Low

At the interbank foreign exchange market, the rupee opened at 89.96, but quickly dropped to a new intra-day low of 90.15.
It later recovered slightly to trade at 90.02, still down by 6 paise from Tuesday’s closing level of 89.96.

2. Historic Close on Tuesday Set the Tone

A day earlier, on December 2, the rupee had already hit an all-time closing low of 89.96, falling 43 paise in a single session.
Heavy demand for the US dollar from importers and speculators contributed to this decline.

3. Why the Rupee Is Falling — Key Reasons

Forex analysts say the rupee’s decline is driven by several major factors:

• Banks buying dollars heavily

• FII and FPI outflows from Indian stock markets

• Stalled India–US trade talks

• Exporter-supportive stance from the government and RBI

• Weak market sentiment ahead of key policy decisions

Together, these factors continue to put pressure on the Indian currency.

4. Banks Actively Buying Dollars

According to treasury expert Anil Kumar Bhansali (Finrex Treasury Advisors LLP), nationalised banks were consistently buying dollars on Tuesday at higher levels.
A notable trade even took place at ₹90.0050 after market hours, indicating high dollar demand.

5. FIIs Continue Pulling Out Money

Foreign Institutional Investors sold Indian equities worth ₹3,642 crore on Tuesday.
These outflows directly impact the rupee because foreign investors convert rupees into dollars before exiting.

6. India–US Trade Talks Stalled

The breakdown in India–US trade discussions has added uncertainty for markets.
The absence of progress has strengthened the demand for dollars and weakened the rupee further.

7. RBI’s Silent Support and Possible 91-Level Warning

Mr. Bhansali noted that the rupee may fall towards 91 per dollar if the RBI does not intervene strongly at the 90 mark.
He also said the government and RBI might allow some weakness to give exporters a competitive advantage.

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8. Monetary Policy Meeting Adds Uncertainty

The Monetary Policy Committee (MPC) meeting began today.
Its interest rate decision — due on December 5 — is crucial, especially ahead of the US Federal Reserve meeting on December 10.

Analysts warn that:

• A rate cut by RBI
  → could weaken the rupee further
  → could trigger more selling pressure

This adds to the market’s cautious mood.

9. Global Cues: Weak Dollar Index & Soft Crude Prices

The dollar index was down 0.13% at 99.22, meaning the US dollar was slightly weaker globally.
Brent crude was trading at $62.43 per barrel, down 0.03%.

Normally, these two factors support the rupee — but domestic pressure outweighed global relief.

10. Domestic Markets Also in Red

The currency fall affected stock markets:

• Sensex slid by 165.35 points → 84,972.92

• Nifty declined 77.85 points → 25,954.35

Weakness in equities further contributed to a negative market mood.

Conclusion

The rupee breaching the 90 mark is a significant economic moment for India.
While global conditions are not extremely hostile, domestic pressures — including FII outflows, policy uncertainty, and dollar purchases by banks — have driven the currency to historic lows.
All eyes are now on the RBI’s monetary policy decision and the Federal Reserve’s upcoming meeting, which will determine the rupee’s direction in the coming weeks.