Mumbai | November 11, 2025 — The Indian rupee slipped to an all-time low of ₹88.73 against the US dollar on Tuesday, as rising global oil prices and renewed market volatility weighed heavily on emerging market currencies.
Forex traders attributed the sharp decline to importer demand for dollars and strong crude oil futures, which have surged above $90 per barrel this week. The depreciation also followed a global flight to safety, with investors moving capital into the greenback amid geopolitical uncertainty.
“Rupee weakness is largely driven by global risk aversion and higher oil prices. Domestic fundamentals remain stable, but volatility may persist in the short term,” said a senior forex analyst at a leading private bank.
The Reserve Bank of India (RBI) is believed to have intervened selectively through state-run banks to smooth volatility and prevent excessive speculation, traders noted.
Benchmark Sensex and Nifty indices showed limited reaction, while bond yields edged higher, reflecting investor caution ahead of fresh macroeconomic data releases.
Experts suggest that if oil prices continue to rise, the current account deficit could widen, adding further strain on the rupee. However, steady foreign inflows into equities and strong export receipts could offer partial support.
“The 88.50–89.00 zone will be closely watched by the RBI. Sustained weakness could prompt stronger intervention,” one trader added.
💹 Market Outlook:
USD/INR: 88.73 (Record Low)
Brent Crude: $91.4 per barrel
RBI Reserves: $636.2 billion (latest update)
🌍 In Summary:
The rupee’s slide underscores India’s sensitivity to oil price fluctuations and global sentiment shifts, even as domestic growth indicators remain firm. All eyes are now on RBI’s policy stance and global energy trends in the coming days.
