Rupee Plummets Past 91 Against US Dollar

The Indian rupee experienced a sharp decline on Tuesday, December 16, 2025, falling 36 paise to trade beyond the 91-per-dollar mark for the first time during the day's trading. This drop was primarily attributed to continuous outflows from Foreign Institutional Investors (FII) and ambiguity surrounding a potential trade agreement between India and the United States.

The rupee's depreciation has been notable in recent sessions, sliding from 90 to 91 against the dollar in just ten trading days. In the past five sessions alone, the rupee has lost 1% of its value against the US currency.

As of 11:45 am, the rupee was trading at 91.14 against the dollar, a decrease of 36 paise compared to the previous day's closing figure. Trading began with the rupee opening at 90.87 against the dollar on the interbank foreign exchange, and it continued to lose ground throughout the morning session.

On Monday, the rupee had already reached a record low, settling at 90.78 against the dollar, which represented a 29 paise loss from its previous close.

Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, commented on the situation: "The US-India trade deal still seems distant. Uncertainty has clouded recovery on the USD/INR pair, with dollar buying happening daily." He referred to comments from the Commerce Secretary regarding the signing of the first phase of any trade deal before year-end. Bhansali added that even a reduction in the trade deficit on Monday was insufficient to bolster the rupee, given ongoing FII outflows. Exchange data indicated that FIIs sold equities worth ₹1,468.32 crore on Monday.

Data released by the government on Monday also revealed that wholesale price inflation remained negative for the second consecutive month in November, registering at (-) 0.32%. That said, the reality is a bit more complicated. there was an increase in the prices of food items such as pulses and vegetables compared to the previous month. The Wholesale Price Index (WPI)-based inflation rate was (-) 1.21% in October and 2.16% in November of the previous year.

Meanwhile, the dollar index, which measures the dollar's strength against six other major currencies, was down slightly by 0.03%, trading at 98.27. Brent crude, the international benchmark for oil prices, was also trading lower, down 0.61% at $60.19 per barrel in futures trading.

In the Indian equity market, the 30-share Sensex index fell by 363.92 points to 84,849.44 in early trading, while the Nifty was down 106.65 points to 25,920.65.