Indian Rupee Hovers All-Time Lows

2025-12-05 06:39 By Joshua Ferrer 1 min. read

The Indian rupee remained weak around 89.8 per USD, hovering all-time lows, after the Reserve Bank cut interest rates at its December meeting.

The central bank lowered the repo rate by 25 bps to 5.25%, its first move in six months, after inflation hit record lows and growth stayed firm, a combination policymakers described as a “Goldilocks” backdrop that allowed room to support activity.

The central bank kept its neutral stance and indicated this could be the final cut for now, with future support likely delivered through liquidity operations.

While most economists expected the cut, some thought the RBI would hold after the rupee’s slide.

The currency has fallen nearly 5% this year, the weakest in Asia, pressured by soft trade flows, capital outflows and steep US tariffs that have strained exports.

Meanwhile, the rupee found support from a weaker US dollar after the Federal Reserve cut rates, while Chair Powell’s post-meeting comments surprised markets expecting a more hawkish tone.



News Stream
Indian Rupee Hits Over 1-Month Low
The Indian rupee slipped past 91.9 per dollar, marking its lowest level in over a month, as a spike in global oil prices and a firm US dollar weighed on the currency. Rising tensions in the Middle East pushed Brent crude higher, raising fears of supply disruptions through the Strait of Hormuz, which handles roughly half of India’s crude imports. At the same time, the dollar strengthened as investors shifted toward traditional safe-haven assets during the latest bout of geopolitical uncertainty, adding further headwinds for the rupee and other emerging market currencies. The RBI stepped into spot and forward markets to contain volatility, with its short-term forwards book at the lowest since September 2024. The rupee could test 91.5-93 if oil stays elevated, with portfolio outflows and importer dollar demand adding pressure. Flight disruptions and higher shipping costs are also feeding near-term energy import stress.
2026-03-02
Indian Rupee Hits 4-week Low
The Indian Rupee touched 91.30 against the USD, the lowest since February 2026. Over the past 4 weeks, US Dollar Indian Rupee lost 1.06%, and in the last 12 months, it increased 4.13%.
2026-03-02
Rupee Steady Ahead of GDP Update
The Indian rupee held steady at around 90.9 per dollar, pausing its losses from the previous sessions as investors assessed new economic data and ongoing central bank interventions. Market participants remained cautious ahead of the release of India’s updated GDP framework, which is expected to revise the country’s growth metrics. The government is updating the GDP base year to 2022-23 from 2011-12, with advance estimates suggesting 7.6% growth this fiscal year, up from the previous 7.4%. The revision gives greater weight to fast-growing sectors like the digital economy and gig work, while reducing emphasis on agriculture and informal manufacturing. Economists highlight that the updated GDP series will be pivotal for future policy decisions, with the Reserve Bank of India likely to maintain a growth-supportive stance depending on insights from the revised data.
2026-02-27