Rupee Hits Record Low, Breaches 91 per Dollar Amid FII Outflows and Trade Uncertainty

New Delhi, December 16, 2025: The rupee slipped to an all-time low on Tuesday, breaching the 91-per-dollar mark against the US dollar for the first time, as persistent foreign fund outflows and trade-related uncertainties continued to weigh heavily on the domestic currency.

The fall extended the rupee’s losing streak, with the currency weakening steadily over recent sessions and repeatedly touching fresh record lows. Over the last 10 trading sessions, the rupee has depreciated from the 90-per-dollar level to 91, while it has lost nearly one per cent against the greenback in the past five sessions alone. At 11.38 am, the rupee was trading at 91.075 against the US dollar.

Earlier in the day, the currency touched a record intraday low of 90.83. After opening, it slipped further by 0.1 per cent to 90.79. The pressure followed heavy selling in the previous session, when the rupee dropped to an intraday low of 90.80 before settling at a record closing low of 90.78.

Market participants said sustained selling by foreign institutional investors has created a vicious cycle for the rupee. Typically, when the currency weakens sharply, the Reserve Bank of India intervenes in the foreign exchange market by selling dollars to prevent excessive volatility and curb rapid depreciation.

The latest slide comes after the rupee had already fallen 17 paise on Friday to close at 90.49, which was its lowest-ever closing level at the time. On Monday, the domestic currency had opened at 90.53 in the interbank foreign exchange market, indicating continued pressure ahead of Tuesday’s sharp fall.

By Rajeev Sharma

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