The rupee (INR) remained close to its all-time low, declining by 22 paise to 89.75 against the US dollar during early trading on Tuesday, as the absence of a US-India trade agreement overshadowed the effect of impressive economic growth.
On Monday, the rupee fell to 89.73 against the US dollar, dropping below its earlier record low of 89.49 reached around two weeks ago.
The currency has fallen by more than a rupee against the US Dollar since November 3, based on the available data.
This decline in the currency occurs just before the Reserve Bank of India (RBI) policy meeting and in spite of a robust GDP growth of 8.2% for the second quarter announced on Friday. The RBI is set to convene the Monetary Policy Committee meeting between December 3, 2025, and December 5, 2025.
As per a report from Reuters, traders indicated that the Indian central bank is probably selling US dollars to prevent the rupee from dropping below 90. The currency’s decline is being driven by corporate demand for dollars, inconsistent supply from exporters, and speculative trading positions.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, noted that the persistent decline of the rupee is a discouraging factor affecting foreign institutional investor (FII) inflows. A reasonable trade agreement between India and the US could help stabilize the rupee, but this negotiation has been delayed for an extended period.
