Overview
- The currency crossed the 91-per-dollar mark for the first time on Tuesday, trading near 91.01 by the provisional close after an intraday low around 91.14, following Monday’s record finish near 90.78–90.74.
- Traders cited persistent foreign portfolio outflows, importer dollar demand and NDF hedging flows, with Reuters reporting roughly $18 billion pulled from equities this year.
- Uncertainty over an India–US tariff framework weighed on sentiment; officials said a framework deal is very close, while reports highlighted elevated US levies on Indian goods.
- November’s trade deficit narrowed to about $24.53 billion, yet the improvement failed to stabilize the currency, which is down roughly 6% in 2025 and ranks among Asia’s weakest.
- Analysts flagged scope for further volatility toward 91–92, noting the RBI’s lighter touch on intervention despite sizable foreign-exchange reserves near $687 billion.