/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130344212z-iw-new.png)
/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130332454z-iw-new.jpg)
/industry-wired/media/media_files/2025/12/02/rupee-falls-to-record-rs-8985-as-weak-flows-and-delayed-us-india-deal-hit-sentiment-2025-12-02-15-12-12.jpg)
Rupee Slides to New Record Low as RBI Steps In and Market Liquidity Tightens Amid Delayed US-India Trade Talks
The Indian rupee touched a new record low of Rs. 89.85 against the US dollar on Tuesday. The fall came during early trade and created fresh worry in currency markets. Traders said weak foreign flows and slow progress on the US-India trade deal pushed the rupee down. Strong GDP growth of 8.2 percent could not lift sentiment.
Foreign Flows and Market Pressure
Foreign investors continued to sell Indian stocks. The outflow of the investment reduced the dollar availability and consequently pushed the Indian rupee down. Exporters restricted their flows to the market, which contributed to the tightness of the liquidity. On the other hand, importers and big corporations bought extra dollars for their payment, which further elevated the demand.
The RBI intervention was seen around the 89.80 to 90 level. Traders said the central bank sold dollars to stop a quick fall. The support helped the rupee bounce slightly but did not change the overall trend. The RBI will announce its monetary policy from December 3 to December 5, and markets expect comments on currency stability.
Trade Deal Delay and Market Sentiment
The delay in the US-India trade deal was a significant factor behind the rupee's weakening. The talks have been stuck for a long time. The lack of clarity made traders more cautious. Analysts said a clear deal could bring fresh confidence, but the long wait is hurting sentiment.
Experts expect more volatility this week. Some see the rupee moving between 88.90 and 89.80. Others expect a wider band between 88.55 and 90.80. The ₹90 mark has become a key level. A break above it may trigger stop-loss trades and faster depreciation.
The situation shows a mixed picture. India is posting strong growth numbers. Global risks, weak flows, and rising import bills are hitting the Indian rupee. A weaker currency pushes up costs for oil, electronics, and companies with dollar loans. Foreign investor confidence may also soften if outflows continue.
The coming days will be important. Markets will watch the RBI’s tone on currency stability. Any update on the US-India trade talks may also change the mood. Until then, traders expect the currency markets to stay sensitive and unpredictable.