The domestic currency touched a fresh all-time low near 91 in early trade, after opening at 90.87, lower than its previous close.
The rupee has now declined about 6–7% so far in 2025, placing it among the weaker emerging market currencies this year.
Forex traders said persistent dollar buying, linked to foreign portfolio exits and ongoing uncertainty around trade talks with the US, kept pressure on the currency despite some supportive global cues.
However, a weaker US dollar and a decline in global crude oil prices helped cap sharper losses in the rupee, preventing a steeper slide.
On Monday (December 15), the rupee had settled at 90.78, its previous record low, after falling 29 paise amid concerns over the trade deal and continued foreign fund selling.
“The US–India trade deal still appears some distance away. While there have been statements suggesting progress, the uncertainty continues to cloud recovery in the rupee, with dollar buying seen almost every day,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Even improving trade data failed to lift sentiment.
According to government data released on Monday (December 15), India’s merchandise trade deficit narrowed to a five-month low of $24.53 billion in November, supported by a rebound in exports.
Exports rose 19.37% year-on-year to $38.13 billion, a six-month high, driven by stronger shipments of engineering and electronics goods, while imports declined 1.88% to $62.66 billion, led by lower inbound shipments of gold, crude oil, coal and coke.
Despite the narrowing trade gap, foreign investor selling continued, with FIIs offloading equities worth ₹1,468.32 crore on Monday (December 15), according to exchange data.
In a statement to the Lok Sabha on Monday (December 15), the Minister of State for Finance said the rupee’s depreciation during the current financial year has been influenced by a higher trade deficit, developments around the India–U.S. trade agreement, and relatively weak support from the capital account.
Adding to the macro backdrop, wholesale price inflation remained in negative territory for the second consecutive month, with WPI-based inflation at (-) 0.32% in November, compared with (-) 1.21% in October, government data showed.
Prices of food items such as pulses and vegetables rose on a month-on-month basis, though overall inflation stayed subdued.
-With agencies inputs
