Mumbai, India , December 16, 2025 :
The Indian rupee continued its downward slide on Tuesday, touching a record low against the US dollar amid lingering uncertainty over an India–US trade agreement, sustained foreign investor outflows, and global economic pressures. In early trade, the rupee weakened by 9 paise to 90.87 per dollar, marking its lowest-ever level, compared with the previous close.
According to forex market data, the domestic currency later traded in a narrow range of 90.77 to 90.87 in the interbank foreign exchange market. By mid-morning, the rupee was still under pressure, reflecting cautious sentiment among traders despite some supportive global cues.
Trade Deficit Narrows, But Rupee Remains Weak
According to the latest government data, India’s trade deficit narrowed to $24.53 billion in November, a five-month low. Exports surged 19.37% to $38.13 billion, the highest level in six months, driven by strong shipments of engineering and electronics goods. Imports declined 1.88% to $62.66 billion, helped by lower inbound shipments of gold, crude oil, coal, and coke.
Despite these positive indicators, the rupee failed to gain ground, underscoring the dominant influence of global capital flows and geopolitical uncertainty.
Global Cues and Market Performance
Losses in the rupee were partly capped by a weaker US dollar and falling oil prices. Brent crude futures slipped 0.61% to $60.19 per barrel, easing pressure on India’s import bill. Meanwhile, the dollar index, which tracks the greenback against a basket of six currencies, edged 0.03% lower to 98.27.
Domestic equity markets also opened in the red. The BSE Sensex fell 363.92 points to 84,849.44, while the Nifty 50 declined 106.65 points to 25,920.65 in early trade, reflecting cautious investor sentiment.
Inflation Snapshot
Government data showed Wholesale Price Inflation (WPI) remained negative for the second consecutive month at -0.32% in November, even as food prices—particularly pulses and vegetables—rose on a month-on-month basis.
