Rupee Breaks Below Key 90 Level
2025-12-03 06:22
By
Joshua Ferrer
1 min. read
The Indian rupee slipped past the key psychological level of 90 per USD, hitting a fresh all-time low as uncertainty over a pending trade deal with the US continued to weigh on the currency.
India remains one of the few major economies without a trade pact with the US, though officials are optimistic about finalizing an agreement soon.
However, the prolonged delay has contributed to the rupee’s 5% decline this year, its sharpest annual fall since 2022, making it among Asia’s weakest performers, as steep US tariffs of up to 50% on Indian goods hurt exports to its largest market and dampen foreign investor appetite.
A robust Q3 GDP did little to lift the currency and a widening current account deficit added further pressure.
Attention now turns to the Reserve Bank of India’s policy meeting on December 5.
The rupee’s sustained weakness and a strong GDP print have reduced hopes of a rate cut, despite earlier comments from RBI Governor Malhotra highlighting record-low inflation.