- By Raju Kumar
- Wed, 03 Dec 2025 09:55 AM (IST)
- Source:JND
Rupee Fall: The Indian rupee fell 9 paise to a record low of 90.05 against the US dollar in early trade on Wednesday morning. The INR is expected to remain around the 90 per dollar level with fragile sentiment and skewed flows likely to overshadow any relief from a softer US currency.
The 1-month non-deliverable forward indicated the rupee will open in the 89.86-89.92 range versus the US dollar, having weakened 0.4% on Tuesday to 89.87. The currency dipped to a record low of 89.9475 on Tuesday, and inched past the 90 mark on the interbank order-matching system after the usual market hours for spot trading.
Sixth Straight Day Of Weakness
The fall marked a sixth straight day of weakness, a retreat that's unfolded despite regular intervention by the Reserve Bank of India.
The rupee's slip past 88.80, a level the RBI had defended for weeks, has effectively "stripped away what had become a psychological and technical anchor for the market" and opened the door for more weakness, a currency trader at a private sector bank said.
Rupee Weakness Temporary: CRISIL
Meanwhile, as the Indian economy is expected to grow at 7 per cent in the current fiscal 2025-26, Dharmakirti Joshi, Chief Economist, CRISIL Limited, asserted that the weakness of the INR is a temporary trend.
"For the next year, we expect the momentum to continue, but at a slightly slower pace," Joshi said, forecasting 6.7 per cent for the 2026-27 fiscal. For the current fiscal year, the economist noted that India will grow at 7 per cent but with "a slight moderation in growth in the second half."
He noted that the economy will get a jab on the arm once the first tranche of the ambitious India-US Bilateral Trade Agreement gets finalised.
Asked to react to the rupee's consistent depreciation and what the future holds for the Indian currency, the economist said he sees the appreciation around the corner.
"My belief is that if you get a trade deal (with the US), I think the depreciated rupee will again start appreciating, and I think it also depends quite a lot on what the global financial conditions are and our expectation is that rupee will strengthen from these levels in the months ahead," Joshi said.
(With agencies inputs)