Rupee Nosedives, Hits Record Low Of 90.47 Against US Dollar

The rupee declined as much as 90.4675 against the US dollar on December 11 after falling having weakened earlier to an all-time low of  90.42 hit on December 4.

The downslide impact on the rupee is likely due to the absence of the US-India bilateral trade pact, and outflow of corporate dollar from the Indian economy. 

In 2025, rupee became the worst-performing currency after having recorded a 5% fall against the USD year-to-date, pressured by 50% Trump tariffs on Indian commodities, which have impacted exports to the south Asian nation's biggest market. 

In the current fiscal year, foreign investor have sold close to $18 billion of domestic stocks on a net basis, making India one of the most-affected markets when it comes to portfolio outflows.

Meanwhile, RBI likely intervened to aid the rupee and halt losses, citing a Reuters report.

On the other hand, Goldman Sachs noted, "A record October goods trade deficit and muted capital inflows — amid uncertainty around the India-US trade deal — point to a further deterioration in the net Balance of Payments (BoP) position in Q4," as per a Reuters report.

Speaking on expectations around the highly-anticipated India-US trade deal V. Anantha Nageswaran said he expects the trade pact to be inked by March, 2026, according to a Bloomberg report. 

His statement comes during a time when the Commerce Secretary Rajesh Agrawal met the US Deputy Trade Representative Rick Switzer to deliberate on bilateral trade and economic ties. 

On Thursday, among broader markets, Asian currencies were trading mixed while the dollar index was steady at 98.6.