India's Rupee Hits Record Low Against Dollar

The Indian rupee has hit an all-time low of 89.79 against the U.S. dollar in intraday trade on December 1, 2025, according to The Hindu. This marks a depreciation of 34 paise, tracking a negative trend in domestic equities and persistent foreign fund outflows.

Forex traders attribute the rupee's decline to a strong dollar and rising international crude oil prices, which have weighed heavily on the Indian currency. Significant dollar demand from importers is also exerting downward pressure.

The rupee opened at 89.45, but quickly lost ground, falling to this record low, following a previous close of 89.45 on November 28. Just a week earlier, on November 21, the rupee had registered a substantial drop of 98 paise, closing at 89.66 against the dollar.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, pointed out that the rupee has faced pressure due to heavy foreign portfolio investment outflows, driven by selling stakes in various companies, high oil and gold buying, and repayments by corporates and the central government.

He further noted that trade tensions with the U.S. remain, with hopes for a framework trade deal that might benefit Indian exporters by the end of the year. Commerce Secretary Rajesh Agrawal expressed optimism about reaching an agreement aimed at addressing tariff issues.

Both nations have been engaged in negotiations for a bilateral trade deal, with the first tranche expected to emerge by fall 2025. However, the imposition of tariffs by the Trump administration on Indian exports has posed challenges.

Additionally, the dollar index, which reflects the greenback's strength against a basket of six currencies, was trading 0.04% higher at 99.50. Brent crude, the global oil benchmark, rose by 1.96% to $63.60 per barrel in futures trade.

On the domestic front, both benchmark indices, Sensex and Nifty, experienced declines from their record highs by noon. The Sensex was down 122.58 points or 0.14% at 85,584.09, while Nifty fell 46.35 points or 0.18% to 26,156.60.

Foreign institutional investors reported net sales of equities worth 3,795.72 crore on November 28, indicating a worrying trend for the Indian market.