Indian Rupee Hits Fresh Record Low at 90.20 Against US Dollar

December 3, 2025

New Delhi : The Indian rupee slipped to a new record low of 90.20 per US dollar today, down from Tuesday’s close of 89.96, reflecting renewed pressure on the currency.

The fall comes after persistent foreign portfolio investor (FPI) outflows and uncertainty over a US–India trade deal outweighed strong domestic macroeconomic fundamentals.

Factors Driving Rupee Weakness

The rupee, down about 5% against the dollar this year and among Asia’s worst-performing currencies, faces pressure from:

• A record-high trade deficit, widened to $41.68 billion due to a surge in imports (especially gold and silver) and falling exports.
• Delays in finalizing a US–India trade agreement, which have dampened investor sentiment.
• Persistent foreign investor outflows, with nearly $17 billion withdrawn from equities so far in 2025.

Weak portfolio flows, muted trade activity, and global dollar strength have further contributed to the rupee’s decline.

Will the Rupee Fall Further?

Analysts warn that near-term pressure on the rupee may continue due to ongoing dollar demand from importers and exporters holding back sales of dollars.

Ritesh Bhansali, Deputy CEO at Mecklai Financial Services, told Bloomberg News, “Exporters are holding back dollar sales as the rupee weakens, while dollar demand from importers remains strong.”

Barclays noted that only a conclusion of the India–US trade deal is likely to provide meaningful relief. With the psychologically important 90 level breached, HDFC Securities expects the rupee could slip further toward 90.30 in the coming days.