Indian Rupee Nears Key 90 Mark
2025-12-02 07:06
By
Joshua Ferrer
1 min. read
The Indian rupee fell to around 89.9 per USD, hitting another fresh record low and signaling a potential break past the key psychological 90 level, as the lack of a US–India trade deal and high tariffs continued to weigh on sentiment.
India remains one of the few major economies without a formal pact with Washington, and uncertainty over lowering tariffs has contributed to a widening current account deficit.
The rupee's 4.8% decline this year makes it Asia’s worst performer.
The Reserve Bank of India has intervened to curb volatility, but limited room for further support leaves the rupee vulnerable if no agreement is reached, raising risks of a durable breach of 90.
A robust Q3 GDP print also did little to lift the currency, which remained constrained by trade imbalances, foreign outflows, and persistent dollar demand.
On the policy front, most economists expect the RBI to cut rates on December 5 and hold through 2026, though strong GDP growth may prompt some to keep rates unchanged.