Rupee hits document low as U.S. commerce stalemate drags on, outflows pinch

The rupee hit a document low on Friday (December 12, 2025), as sentiment remained slowed down by the absence of a commerce cope with the U.S. and portfolio outflows, drawing seemingly intervention by the Reserve Financial institution of India (RBI) to curb the autumn.

The rupee weakened to ₹90.55 towards the U.S. greenback, slipping previous its earlier all-time low of ₹90.4675 hit on December 11. The forex was final at ₹90.3475 as of 10:00 a.m., little modified on the day.

The rupee is Asia’s worst performer this yr. It has fallen practically 6% towards the greenback year-to-date, as steep U.S. tariffs of as much as 50% on Indian items harm exports to its greatest market, whereas additionally diminishing the enchantment of native equities for overseas buyers.

With negotiations ongoing, Prime Minister Narendra Modi stated he spoke with U.S. President Donald Trump by telephone on Thursday (December 11), as New Delhi seeks aid from 50% U.S. tariffs.

“The rupee weak point has additional to go if tariffs are right here to remain. The expectations are presently one-sided explaining importer demand whereas exporters stay lacking, plus the strain from portfolio outflows,” stated Dhiraj Nim, an economist and FX strategist at ANZ.

“The RBI will probably be open to weak point however in a calibrated method,” he stated.

International buyers have internet bought $18 billion of Indian shares in 2025 up to now, making it one of many hardest-hit markets by way of portfolio outflows.

Merchants pointed to agency greenback bids within the non-deliverable forwards market alongside hedging demand from importers as elements behind the rupee’s decline on Friday (December 12).

The Central Financial institution, in the meantime, seemingly stepped in through greenback gross sales via state-run banks to curb the rupee’s fall, 4 merchants informed Reuters.

“Because the rupee touches an all-time low and stays close to it, we proceed with our technique of asking exporters to proceed promoting ({dollars}) in money and importers to maintain shopping for the {dollars} on the dip (in USD/INR),” stated Anil Bhansali, head of treasury at Finrex Treasury Advisors.

Asian currencies had been buying and selling combined whereas the greenback index wallowed close to a two-month low.

In response to analysts and bankers, U.S. commerce negotiations stay the point of interest for the rupee, and a breakthrough might assist the forex snap from its latest falling streak.

The rupee’s tough patch has additionally pushed into undervaluation territory.

The forex’s trade-weighted actual efficient trade price, which accounts for the variation in inflation with buying and selling companions, declined to 97.47 as of October, RBI information confirmed. A studying under 100 indicators undervaluation.