Rupee plunges to 90.13 vs dollar, market sentiment turns tense

Rupee hits a new lifetime low amid FII selling fears and uncertainty over India-US trade negotiations. Markets weigh inflation risks and currency outlook

PGurus Newsdesk

December 3, 2025

Currency turmoil spills into Dalal Street as traders seek stability, trade clarity

Indian rupee sinks to record 90.13 vs US dollar

The Indian rupee tumbles on Wednesday, breaching the psychologically significant ₹90-per-dollar mark for the first time in history. The currency trades at a new all-time low of 90.13 against the US dollar, slipping past the previous record of 89.9475 touched a day earlier.

Analysts link the sharp depreciation to weak trade receipts, subdued portfolio inflows, and cautious foreign portfolio investor positioning, compounded by lingering uncertainty around India-US trade negotiations. These factors keep the rupee under sustained stress through the trading session, according to market participants.

Currency turmoil spills into equities

The currency slump dampens sentiment on Dalal Street. The Nifty 50 index falls below 26,000, underscoring the cautious tone, while the Sensex sheds nearly 200 points in early trade. Investors remain alert to the inflation pass-through risks and the potential impact on foreign institutional flows.

Despite a muted market open later in the day—with the Sensex inching up 12 points to 85,151 and the Nifty easing 18 points to 26,014—the broader mood remains fragile.

Top market losers in early trade

Shares of key benchmark constituents— including Hindustan Unilever, Titan Company, Tata Motors PV, NTPC, Bharat Electronics, Trent, Bajaj Finserv, Kotak Mahindra Bank, UltraTech Cement, Maruti Suzuki, L&T, Power Grid, and ITC—trade lower in the morning session, reflecting broad-based risk aversion tied to currency volatility.

RBI intervention debate and FII exits

Market strategists flag concerns over the RBI’s non-intervention posture, which traders fear could signal room for further rupee weakness. The lack of currency defense is contributing to ongoing FII selling, even as corporate earnings strength and a rebound in GDP are improving domestic fundamentals.

“This concern is forcing FIIs to sell despite improving fundamentals of rising corporate earnings and robust GDP momentum,” analysts say.

Market watchers maintain that a trade agreement between India and the United States could reverse the rupee’s slide, potentially as soon as this month. However, they note that the tariff structure and its details under the deal will determine the magnitude and timing of any rupee recovery.

“The rupee depreciation will halt and even reverse when the India-US trade deal materialises. This is likely this month. Much will depend on the tariff specifics to be imposed on India as part of the deal,” analysts state.

For now, traders focus on rupee stabilization signals and further commentary on India-US trade dynamics before taking directional currency or equity bets.

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