Athira Sethu
Kochi, 3 Dec 2025
The rupee extended losses and touched an all-time low of 90.14 against the US dollar in early deals on Wednesday, December 3. The rupee on Tuesday slipped to its psychological 90-dollar level for the first time in intraday deals before settling at 89.96, down 43 paise. This was mainly on account of sustained dollar demand from importers as well as unabated short-covering by speculators.
Forex traders attributed the rupee’s weakness to a variety of factors, like foreign fund outflows from the equity market and continued uncertainty over the Indo-US trade deal, which has left investor sentiment fragile.
In the interbank foreign exchange market, the rupee started trading at 89.70 before it declined further to an intraday low of 90.00, a drop of 47 paise from its previous close. At the end of trade on Tuesday, it had closed at 89.96, down 43 paise from the prior close. The rupee has declined 8 paise on Monday and settled at 89.53 against the US dollar.
On the rupee’s depreciation, Rajiv Kumar, former Vice Chairman of Niti Aayog, said, “A depreciated rupee is actually good for the Indian economy. A weak rupee bodes well for the country’s labour-intensive exports, he said, adding, it would increase foreign exchange earnings and thereby create jobs. He maintained that the concept of “strong rupee” as a symbol of the strength of an economy requires revisiting.
Kumar said the country should get rid of the “macho rupee syndrome” and change the public narrative on the performance of the currency. He emphasized that depreciation of the rupee need not be looked upon with concern; it helps improve economic fundamentals for the country.
