The Indian rupee on Wednesday, December 3, 2025, tumbled to a new historic low against the US dollar, breaching the psychologically significant 90-mark for the first time ever. The domestic currency closed the trading session at a record low of 90.21, marking a sharp decline of 25 paise from its previous close.
Rupee's Steep Descent Continues
This fresh plunge follows a significant drop just a day earlier. On Tuesday, December 2, the rupee had already settled 43 paise lower at a then lifetime low of 89.96 against the American currency. The consecutive sessions of weakness have pushed the rupee into uncharted territory, raising concerns among importers and policymakers alike.
Key Factors Behind the Fall
Forex analysts and traders point to a combination of aggressive market forces driving the rupee's depreciation. The primary pressure came from sustained dollar demand from importers, who were actively buying the US currency to meet their foreign payment obligations. Simultaneously, the market witnessed continued short-covering activity by speculators. These speculators, who had previously bet on the rupee's strength, were forced to buy dollars to close their positions, further amplifying the downward pressure on the Indian currency.
Market Implications and Outlook
The breach of the 90 level is a critical milestone for the USD/INR pair and is expected to influence pricing across the economy. A weaker rupee makes imports more expensive, which can contribute to inflationary pressures. It also increases the cost for Indian companies with foreign currency debt. Market participants are now closely watching the Reserve Bank of India's potential intervention strategies to curb excessive volatility and stabilize the currency. The focus will remain on global dollar strength and domestic economic indicators for further cues on the rupee's trajectory.
