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Domestic currency depreciation

Indian Rupee Breaches 90-a-Dollar

Analysis based on 7 articles · First reported Dec 03, 2025 · Last updated Dec 04, 2025

Sentiment
-70
Attention
6
Articles
7
Market Impact
General
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The depreciation of the India — Indian rupee to a record low against the United States is a significant event for financial markets. It is driven by foreign fund outflows from India, higher Brent Crude oil prices, and uncertainty surrounding the India-United States trade deal, leading to negative sentiment for Indian equities like the S&P BSE Sensex and NIFTY 50.

Financial Services Oil and Gas Precious Metals

The India — Indian rupee has depreciated to a new all-time low, breaching the 90-a-dollar level against the United States. This decline is primarily attributed to sustained outflows of foreign funds from India, elevated crude oil prices, and ongoing uncertainty regarding a trade deal between India and the United States. The State Bank of India's initial muted intervention allowed the India — Indian rupee to fall further, though it later stepped in to manage volatility. This depreciation negatively impacts India's import bill and export competitiveness. Foreign Institutional Investors have been actively selling Indian equities, contributing to declines in the S&P BSE Sensex and NIFTY 50. Experts also point to a sudden crash in cryptocurrencies and escalating geopolitical tensions as factors driving safe-haven flows into the United States, further weighing on the India — Indian rupee.

index
The S&P BSE Sensex declined due to foreign institutional investors selling Indian equities, reflecting negative sentiment in the domestic equity market amid the India — Indian rupee's depreciation.
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The NIFTY 50 was down, indicating a negative impact on the Indian equity market as foreign investors sold off equities.
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Rahul Kalantri, VP Commodities at Mehta Equities, attributed the India — Indian rupee's fall to slow export growth, trade deal uncertainty, and foreign investor outflows.
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Mehta Equities, through Rahul Kalantri, offered analysis on the factors contributing to the India — Indian rupee's depreciation.
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Ashika Group's Chief Business Officer, Rahul Gupta, provided an outlook on the India — Indian rupee's likely continued pressure.
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Jateen Trivedi, VP Research Analyst at Meritz Securities, highlighted that high metal and bullion prices and US tariffs worsen India's import bill and export competitiveness, contributing to the India — Indian rupee's depreciation.
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Rahul Gupta, Chief Business Officer at Ashika Group, noted that the India — Indian rupee's trend reflects a recalibration of India's external sector under tighter global financial conditions.
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Anil Kumar Bhansali, from Finrex Treasury Advisors, commented on the State Bank of India's actions regarding the India — Indian rupee's depreciation.
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Finrex Treasury Advisors's Executive Director, Anil Kumar Bhansali, provided insights into the State Bank of India's handling of the India — Indian rupee's fall.
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Uday Kotak, a veteran banker, commented on foreign selling of Indian stocks and the India — Indian rupee's performance.
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Mirae Asset Sharekhan, through its Research Analyst Anuj Choudhary, provided analysis on the India — Indian rupee's depreciation and market outlook.
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S&P BSE Sensex competitor NIFTY 50 S&P BSE Sensex is the primary benchmark index of the Bombay Stock Exchange, operating as a direct competitor to the NIFT
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