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.



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