Indian Rupee Extends Losing Streak, Hits New Low of 90.83 vs Dollar

India’s Retail CPI Rose at a Faster Pace of 0.7% in November, but is Still Below the RBI’s Tolerance Band of 2%-6%.

The Indian rupee weakened further on Tuesday (December 16, 2025), slipping to a fresh record low of 90.83 against the US dollar. The continued decline reflects sustained pressure from global currency movements, dollar strength, and domestic market factors.

Rupee Depreciation

The Indian currency began trading on a weak note, opening 0.1% lower at 90.79 against Monday’s (December 15, 2025) close of 90.73. It is a result of continued foreign fund outflows and trade-related uncertainty. The domestic unit registered a loss of 29 paise on Monday, extending its recent losing streak.

The muted opening follows a sharp sell-off in the previous session, when the rupee slid to an all-time intra-day low of 90.80 before ending trade at a record closing level of 90.78 against the greenback. 

Key Factors Influencing the Rupee’s Fall

According to forex traders, persistent risk aversion in the market, strong demand for dollars from importers kept the currency weak. Concerns also rose over the timing and outcome of an India-US trade deal.

Since July 2025, Foreign Institutional Investors (FIIs) have sold Indian assets worth more than Rs 1.55 lakh crore. The reasons for this are concerns about US trade tariffs. This has increased the demand for dollars, which is pushing the rupee down.

Oil and gold companies are buying dollars for hedging. Other importers are also stocking up on dollars due to tariff uncertainty. This is putting continuous pressure on the rupee.

Words from Experts 

VK Vijayakumar, chief investment strategist, Geojit Investments Limited, said that the currency “is likely to stabilise since the November trade deficit has come down to $ 24.53 billion from $ 41.64 billion in October. This will take away some pressure on the FIIs to sell, anticipating further depreciation.”

“The Indian rupee plunged to a record low, positioning it as the worst performer among the Asian currencies. Despite the better-than-expected trade balance number, the rupee was unable to find support,” said Dilip Parmar, Research Analyst at HDFC Securities.

Forex Future

Anuj Choudhary, Research Analyst at MiraeAsset ShareKhan, said that “The currency is likely to remain under pressure in the near term.”

“The rupee is expected to trade with a negative bias amid delay in Indo-US trade deal and FII outflows,” he said.

“A weak dollar and any intervention by the RBI may also support the rupee at lower levels. Investors may watch for central bank monetary policy decisions from the BOE, the ECB and the BoJ. USD-INR spot price is expected to trade in a range of Rs 90.30 to Rs 91.”

According to Barclays, “Only an India-US trade deal is likely to provide near-term respite to the rupee.” 

Impact on Imports 

Importing goods will become more expensive with the weaker rupee. Travelling and studying abroad will also become more expensive. 

US President Donald Trump has imposed a 50% tariff on Indian imports, which could reduce India's GDP growth by 60-80 basis points and increase the fiscal deficit. This could lead to a decrease in exports and a reduction in foreign exchange inflows. This is also putting pressure on the rupee.

Final Thoughts

The latest slide came after the rupee had already fallen 17 paise, last week on Friday, to close at 90.49, which was then its lowest-ever level against the US dollar. The rupee has fallen 5% so far in 2025, which makes it the worst-performing Asian currency this year.

The currency’s trajectory will depend on policy responses, external trade dynamics, and investor sentiment.