The Indian rupee touched a new all-time low against the US dollar during trading on Monday, December 1, 2025, intensifying concerns about currency stability and import costs.
Rupee's Sharp Intraday Decline
At the interbank foreign exchange market, the domestic currency began the day at 89.45. However, it quickly lost momentum and weakened significantly as trading progressed. The rupee plummeted to a provisional record low of 89.79 against the US dollar during intraday trade. This represented a steep fall of 34 paise from its previous closing level.
Key Details of the Forex Movement
The trading session on December 1 witnessed sustained pressure on the Indian currency. The opening level of 89.45 proved to be fragile, and selling pressure drove the value down. The plunge to 89.79 marks the weakest level the rupee has ever reached against the greenback in the history of the forex market. This intraday movement highlights the volatile conditions prevailing in the currency markets.
Implications and Market Context
A record low for the rupee has several immediate consequences. It makes imports, including crucial items like crude oil and electronics, more expensive, potentially fueling inflation. For companies with foreign currency debt, repayment becomes costlier. The decline is often attributed to a combination of global dollar strength, elevated crude oil prices, and foreign portfolio outflows from Indian markets. Investors and policymakers will be closely monitoring the Reserve Bank of India's potential interventions to curb excessive volatility and stabilize the forex market.
This development underscores the ongoing challenges in managing currency stability amid complex global economic crosscurrents. The performance of the rupee against the dollar remains a critical indicator of India's economic health and external sector resilience.
