Indian Rupee Hits Record Low of 90.56 vs USD

The Indian rupee plunged to a record low of 90.56 against the US dollar in early trading on Friday, December 12, 2025, in Mumbai's foreign exchange market, amid ongoing uncertainty over a delayed trade agreement with the United States and sustained outflows of foreign investment. The currency, which closed at 90.32 on Thursday after breaching its previous all-time low of 90.46, recovered slightly to 90.37 by mid-afternoon, reflecting volatile sentiment driven by high demand for dollars from importers and corporates hedging overseas obligations.

The depreciation, marking a decline of about 6 percent for the year so far, positions the rupee as the worst-performing Asian currency in 2025 and the third-weakest major global currency, trailing only the Turkish lira and Argentine peso. Forex traders attributed the slide primarily to the absence of progress in India-US trade negotiations, which have dragged on despite recent momentum. Without a deal, Indian exports face combined US tariffs of 50 percent, comprising a 25 percent reciprocal duty imposed on August 7 and an additional 25 percent punitive levy added on August 27. These measures stem from US efforts under President Donald...