Rupee Slides to Record Low of 89.85 Against U.S. Dollar in Early Trade
The Indian rupee fell to a new all-time low of 89.85 against the U.S. dollar during early trade on Tuesday, December 2, 2025. The domestic currency came under pressure as global dollar strength and persistent foreign fund outflows weighed on overall market sentiment.
According to forex traders, a surge in dollar demand from corporates, import-dependent businesses, and foreign portfolio investors contributed significantly to the currency’s weakness. As companies prepared for monthly and quarterly settlements, the heightened appetite for the greenback pushed the rupee further downward.
The broader strength of the U.S. dollar in international markets also played a critical role. With ongoing geopolitical concerns, monetary policy uncertainty, and cautious global risk appetite, investors continued to favor the dollar as a safe-haven asset.
Crude oil prices, which remain elevated, added to the pressure. Higher oil prices often widen India’s trade deficit, increasing the demand for dollars to finance imports. This dynamic typically weighs on the rupee, and the current environment has been no exception.
Analysts suggest that unless foreign fund flows stabilize and crude prices ease, the rupee may continue to face short-term volatility. However, they note that the Reserve Bank of India could step in if needed to curb excessive fluctuations.
As the trading session progresses, all eyes remain on global cues and domestic market movements to assess whether the rupee can recover from its historic low.
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