Indian Rupee Stabilizes

2025-12-29 08:17 By Joshua Ferrer 1 min. read

The Indian rupee stabilized around 89.8 per USD, holding recent gains on a broadly softer dollar and RBI measures that helped steady sentiment.

After breaching the 90-per-dollar mark earlier this month, the currency has shown signs of stabilisation, settling into a holding pattern as the dollar slid to a multi-month trough, giving the rupee some breathing room, while analysts noted that the worst phase of depreciation may be behind.

Supportive factors include improved risk appetite and RBI intervention measures, such as a USD 5 billion dollar-rupee buy-sell swap to boost liquidity.

India’s economic fundamentals also remain strong, with inflation cooling below 1% and GDP growth surprising on the upside, recording its strongest print in six quarters.

Still, the rupee has fallen about 5.2% so far this year, the largest drop among major Asian currencies, pressured by weak investment flows, elevated import-driven dollar demand, steep US tariffs, and uncertainty around Indo-US trade talks.



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