Indian Rupee Plunges to Historic Low Near 90 Against US Dollar

The Indian Rupee extended its losses on December 1, slipping to a record low of 89.76 against the US Dollar. The currency has depreciated by ₹1 since November 3 and remains one of Asia’s worst-performing currencies this year, ahead only of the Turkish lira and Argentine peso.

Intraday Movement and Key Levels

At the interbank foreign exchange market, the rupee opened at 89.45 and traded in a narrow range before settling at 89.76. The previous close was 89.45, indicating a depreciation of 30 paise. Earlier in the day, the currency touched an intraday low of 89.46 against the greenback.

Factors Driving the Decline

Significant dollar demand from importers and sustained foreign portfolio outflows were key reasons for the rupee’s weakness. Elevated crude oil prices added further pressure, with Brent crude futures rising 1.57% to USD 63.35 per barrel.

Global Currency and Market Context

The dollar index, which measures the greenback’s strength against six major currencies, was marginally lower at 99.44. Despite this, the rupee continues to underperform compared to most Asian peers, reflecting structural challenges and external headwinds.

Impact on Domestic Markets

Foreign institutional investors sold equities worth ₹3,795.72 crore on a net basis on Friday, according to exchange data. While positive domestic equities offered some support, it was insufficient to offset the pressure from global factors and rising crude prices.

Read More: RBI Sells $7.91 Billion to Support Falling Rupee.

Conclusion

The Indian Rupee’s fall to 89.76 against the US Dollar underscores persistent currency market stress driven by external factors and capital outflows. With the rupee approaching the 90 mark, traders and businesses remain watchful of global developments, including crude price trends and trade negotiations.

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