Newsroom, December 05, 2025: The Indian rupee depreciated 16 paise to open at a record low of 90.05 against the US dollar in early trade on Friday, extending its year-to-date slide of almost 5% and positioning it as Asia's weakest currency.
The drop followed the Reserve Bank of India's first rate cut in six months, trimming the repo rate by 25 basis points to 6.25%, which forex traders say will exert further downward pressure until foreign portfolio inflows rebound significantly. The RBI also introduced USD 5 billion in three-year buy-sell swaps to inject liquidity, but Governor Sanjay Malhotra clarified: “We don’t target any price levels or any bands. We allow the markets to determine the prices. We believe that markets, especially in the long run, are very efficient.”
Global cues offered little relief, with the dollar index dipping 0.02% to 98.97 and Brent crude easing 0.17% to $63.15 per barrel, but domestic factors like a widening trade deficit and capital outflows amid US tariff threats weighed heavy. Analysts forecast the rupee could test 90.50 soon, though strong fundamentals and RBI reserves may cap the fall.
