Archive · 2 Dec 2025
Rupee Hits Record Low Amid Trade Tensions
The Indian rupee reached a new record low against the US dollar on Monday, December 1, 2025.
This means the rupee has become weaker compared to the dollar.
The rupee's value has been falling due to several reasons.
First, there are fewer foreign investors putting money into India, which has led to a lot of money being taken out of the country.
Second, there hasn't been any progress on a trade deal between the US and India, which has made things worse.
Additionally, India is importing more than it is exporting, which has widened the trade deficit.
The strong US dollar has also made the rupee weaker.
Despite India's strong economic growth of 8.2% in the last quarter, the rupee continues to struggle.
Analysts believe the rupee could reach 90 against the dollar soon if these issues aren't resolved.
Meanwhile, the government introduced new tax bills for tobacco and pan masala, and Maruti Suzuki reported a 26% increase in sales.
VinFast also announced plans to enter India's electric two-wheeler market by 2026.
The Indian rupee hit a record low of 89.5475 against the US dollar on Monday, December 1, 2025, with an intraday low of 89.79.
The rupee's depreciation is driven by persistent portfolio outflows, lack of progress on the US-India trade deal, and a widening trade deficit.
India's GDP grew by 8.2% in the September quarter, but this has not provided respite to the rupee.
Foreign investors have pulled out ₹1.49 lakh crore from Indian equities since July 2025, contributing to the rupee's weakness.
The government introduced new tax bills for tobacco and pan masala, and Maruti Suzuki reported a 26% increase in sales for November 2025.
- Who
- Reserve Bank of India (RBI), US and Indian officials, Foreign investors, Indian importers and exporters, Maruti Suzuki, VinFast
- What
- Rupee depreciation to a record low against the US dollar, introduction of new tax bills, Maruti Suzuki's sales growth, VinFast's entry into India's electric two-wheeler market
- When
- Monday, December 1, 2025
- Where
- India
- Why
- Persistent portfolio outflows, lack of progress on US-India trade deal, widening trade deficit, strong US dollar, new tax reforms, corporate sales performance, and new market entries
- Rupee to Dollar
- 89.5475 (closing), 89.79 (intraday low)
- Previous Record Low
- 89.49 (November 21, 2025)
- GDP Growth (Q2 2025)
- 8.2%
- Trade Deficit (October 2025)
- Record high
- Foreign Investor Outflows (2025)
- ₹1.49 lakh crore (July-December)
- RBI's NDF Position
- Over $70 billion short
- Maruti Suzuki November Sales
- 2.29 lakh units (26% YoY increase)
Sources
How the rupee’s fall is ‘real’ this time
India's Manufacturing PMI Slows To 9 Month Low In November; What Is Leading This Downturn?
Rupee at record low: Will 90/dollar be a reality for Indians before December-end?
Rupee hits a record low of 89.59/$; weak flows and stalled US-India trade deal eclipse blowout GDP performance
Rupee hits record low in early deals, approaches 90 per dollar mark
Rupee falls to all-time low of 89.79 against US dollar in intraday trade
Rupee hits new low as depreciation continues; experts say all eyes on India-US BTA
Rupee hits record closing low of 89.5475/$ on uncertainty about US-India trade talks
Rupee to trade in 89-90 per dollar range in Dec, RBI unlikely to cut rates
Rupee falls 8 paise to close at 89.53 against US dollar
Explainer: Why IMF calls India’s forex rate regime ‘crawl-like’
Rupee hits record low as FII selling and US trade deal delays weigh on sentiment
Rupee at new low, new tobacco-pan masala taxes tabled, Scindia outlines telecom clean-up & more - CNBC TV18
Rupee has fallen and that is not a bad thing
Stock market: Nomura sees US India trade deal soon, revised tariffs close to 20%
Rupee hits new record low of 89.85/$ ahead of RBI MPC meeting
Rupee Slumps 32 Paise to All-Time Low of 89.85 Against US Dollar in Early Trade
Rupee slumps 32 paise to all-time low of 89.85 against US dollar in early trade
Indian Rupee Drops To New Lifetime Low On Speculative, Corporate Flows
Rupee hits record low, slips 28 paise against US dollar
Shares to buy in short term: Mehta Equities’ Riyank suggests Paytm, Motilal Oswal, KPIT Technologies stock to buy
