Rupee record low, INR vs USD, India-US trade deal, forex news India, rupee decline 2025, Indian currency today, forex market update

The rupee on Monday declined to its lowest-ever level of 90.80 before settling at a new all-time low of 90.74 (provisional) against the US dollar, marking a decrease of 25 paise from its previous close. The decline was driven by uncertainties surrounding an India-US trade agreement and ongoing foreign fund outflows.

Forex traders stated that the prevailing risk-averse market sentiment, amplified by robust US dollar demand from importers, further undermined investor confidence.

At the interbank foreign exchange market, the rupee commenced trading at 90.53 against the US dollar, subsequently depreciating and reaching a record intra-day low of 90.80, representing a decline of 31 paise from its previous closing rate.

At the close of trading on Monday, the rupee was quoted at a record low of 90.74 (provisional), reflecting a decline of 25 paise from its previous close.

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On Friday, the rupee declined by 17 paise to conclude at an all-time low of 90.49 against the US dollar.

The Indian rupee declined to a historic low, establishing itself as the poorest performing currency among Asian nations. Despite the more favorable trade balance figures, the rupee was unable to garner support, according to Dilip Parmar, Research Analyst at HDFC Securities.

Parmar further observed, “This deficiency in resilience is mainly due to a substantial demand-supply imbalance, fueled by high dollar demand from importers and ongoing capital outflows, which continue to be the primary concerns for the currency.” In the short term, the technical outlook for the spot USD-INR pair remains optimistic, with primary resistance at 90.95 and support at 90.50, Parmar further stated.

Meanwhile, Commerce Secretary Rajesh Agrawal stated on Monday that India and the United States are “very close” to reaching an agreement on the framework deal.

We are very near to reaching an agreement on the framework deal, which we believe can be finalized within a brief timeframe. However, I would prefer not to specify a timeframe for that,” he informed reporters here.

The two nations are engaged in concurrent negotiations—one concerning a framework trade agreement to mitigate high tariffs and the other pertaining to a comprehensive bilateral trade agreement (BTA).

The Indian industry and exporters are keenly anticipating the conclusion of the negotiations and the announcement of the agreement, as elevated import duties are adversely affecting their shipments to the United States.

India and the United States concluded two days of discussions on Thursday, during which both parties exchanged perspectives on trade-related matters, including the current negotiations for a mutually advantageous bilateral trade agreement.

Prime Minister Narendra Modi and US President Donald Trump engaged in a telephone conversation on Thursday to explore avenues for maintaining the momentum of the bilateral economic partnership, amid indications that both parties are approaching the finalization of a highly anticipated trade agreement.

Meanwhile, the dollar index, which measures the dollar’s strength relative to a basket of six currencies, was trading 0.08 percent lower at 98.32.

Brent crude, the international oil benchmark, was trading 0.21 percent higher at USD 61.25 per barrel in futures trading.

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On the domestic equity market front, the 30-share benchmark index, Sensex, decreased by 54.30 points to close at 85,213.36, while the Nifty declined by 19.65 points to 26,027.30.

Foreign Institutional Investors divested equities totaling Rs 1,114.22 crore on Friday, as per exchange data.

Meanwhile, India’s foreign exchange reserves increased by USD 1.033 billion to USD 687.26 billion during the week ending December 5, according to the Reserve Bank of India on Friday. During the preceding reporting week, the reserves declined by USD 1.877 billion, reaching a total of USD 686.227 billion.