The Indian Rupee hit a record low of 90.14 against the US Dollar in early trading on Wednesday amid persistent FPI outflows and uncertainty over the India-US trade deal.
Mumbai: The Indian Rupee continued its downward trend, hitting an all-time low of 90.14 per US Dollar on 3 December 2025. This marks the third consecutive record low in as many days, driven by heavy FPI outflows, stalled India-US trade talks, and speculative currency movements.
The rupee opened at 89.96 and slipped past the 90-mark early in the session, while it had closed at 89.87 in the previous trading session. Currency experts expect the USD/INR to trade between 88.90 and 90.20, with the 88.80–89.00 range acting as a support zone. Amit Pabari, MD at CR Forex Advisors, noted that a break below 89 would signal a potential pullback.
Speculation is playing a key role in the rupee’s movement. Anindya Banerjee of Kotak Securities explained that sustained trading above 90 could fuel further speculative pressure, creating its own momentum independent of macro fundamentals.
Experts are divided on the rupee’s future trajectory and predicts a possible rise to 91.5 against the US Dollar by year-end but cautions that this could occur sooner depending on global currency movements. The depreciation risk is further compounded by expectations that the US dollar may weaken by 4–5% over 2026.
The rupee’s decline comes despite a weakening dollar index, highlighting domestic pressures such as stalled trade negotiations and foreign portfolio investment outflows. Anil Bhansali, head of treasury at Finrex Treasury Advisors, warned that if RBI support eases at 90, the rupee could slip to 91 in this cycle.
The Reserve Bank of India’s (RBI) monetary policy committee is scheduled to meet later in the day, with its interest rate decision set for December 5, just days ahead of the US Federal Reserve’s decision on December 10. Analysts note that a rate cut by the RBI could intensify selling pressure, although a weakened rupee complicates policy decisions for the MPC.
Investors and traders will closely monitor developments in FPI flows, trade negotiations, and RBI policy, as these factors will determine the near-term direction of the Indian Rupee.
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