Indian Rupee Struggles at Record Lows

2025-12-01 06:25 By Joshua Ferrer 1 min. read

The Indian rupee hovered to around 89.7 per USD, under pressure at record lows, as persistent importer dollar demand outweighed the impact of stronger-than-expected GDP data.

India posted its fastest growth in six quarters, with Q3 GDP surging 8.2%, well above the 7.3% forecast.

However, the robust reading did little to lift the currency, which remained constrained by trade imbalances, foreign outflows, and intermittent dollar sales by state banks as large forward positions matured.

Sentiment has struggled since steep US tariffs on Indian exports were imposed in late August, while stalled US-India trade talks added further pressure.

On the policy front, most economists expect the Reserve Bank of India to cut its key rate by 25 basis points on December 5 and hold it through 2026, following earlier reductions of 100 basis points this year.

However, the strong GDP print has led some analysts to predict the RBI may keep rates unchanged, supporting the rupee.



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