Indian Rupee falls to a new record low of 89.95 against the US Dollar; Here’s what experts said
The currency has depreciated by over a rupee against the US Dollar since November 3, according to data available.
The fall in the currency comes just days ahead of the RBI policy and despite a strong GDP print of 8.2% for the second quarter reported on Friday.
Ashhish Vaidya of DBS Bank India told CNBC-TV18 that in the absence of any positive trigger in the near-term, he would not be surprised to see levels of 90 or even 92 on the currency against the US Dollar.
He ascribes a probability of anywhere between 60% to 70% for these levels to show up on the currency.
Anindya Banerjee of Kotak Securities said that so far, there has been no major intervention that has been observed by the Reserve Bank of India (RBI).
Banerjee said that there was a large Non-Deliverable Forward (NDF) expiry over the last few days, which needed to be rolled over or covered. He went on to add that in case the USD-INR breaches the mark of 90, stop losses will get triggered and there could be a swift move further down towards the 91 mark.
Jayesh Mehta of DSP Finance also attributed the fall in the currency to the daily selling from Foreign Portfolio Investors (FPIs) without any support from the RBI, and NDF expiry covering.
Mehta believes that the RBI should cut interest rates on Friday and should also announce Open Market Operations (OMOs) worth ₹2 lakh crore till March 2026.
According to Reuters reports, the RBI is likely to have sold dollars to prevent the currency to weaken past the mark of 90.
There is a case for the RBI to deliver a rate cut, according to Sakshi Gupta of HDFC Bank. She believes that the rupee is not a dominant driver for the RBI rate decision and that they will focus more on accessing the domestic growth.
After the initial weakness, the USD-INR currently trades at 89.93.
Also Read: Why the currency of one of the fastest growing economies is under pressure
First Published: Dec 2, 2025 9:32 AM IST
