The Indian Rupee fell to a new record low of 90.58 against the US dollar amid a stalled trade deal with the US and heavy selling by global funds.
The Indian Rupee fell to a new record low of 90.58 against the US dollar on 12 December 2025. The currency’s slump is driven by heavy selling of domestic equities by global funds and continued uncertainty over a trade deal with the US.
In 2025, the rupee is down 5.7 per cent, making it the worst-performing Asian currency. Analysts cite India’s widening current account deficit and lack of trade clarity as the main pressures.
Treasury experts note the rupee’s weakness persists despite a softer dollar index, as Foreign Portfolio Investors (FPIs) sell Indian assets. Global funds have sold domestic equities worth ₹1.59 trillion this month.
The Chief Economic Advisor (CEA) V Anantha Nageswaran stated on 11 December 2025 that most trade differences with the US have been resolved, with a formal agreement possible by March 2026.
However, the currency is expected to face near-term pain, with some reports forecasting a further drop to 91.50 per dollar in the next two to three months. Traders are closely monitoring for potential intervention by the Reserve Bank of India (RBI).
SOURCE – BUSINESS STANDARD
