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The Indian rupee hit a record low of 90.82 per dollar, pressured by NDF maturities, FPI outflows, and US tariffs. BSE Sensex and Nifty 50 slipped, while RBI intervened to limit losses.
By Anshul December 16, 2025, 10:00:33 AM IST (Published)
2 Min Read
The Indian rupee weakened to all-time low for the fourth consecutive session on Tuesday (December 16), pressured by strong dollar demand linked to the maturity of non-deliverable forward (NDF) positions and sustained foreign portfolio investor (FPI) outflows.
The currency slipped to 90.82 per dollar, breaching Monday’s (December 15's) record low of 90.78.
So far in 2025, the rupee has depreciated around 6–7%, placing it among the weakest-performing emerging market currencies this year. Analysts attribute the decline largely to higher US tariffs on Indian exports, which have weighed on trade flows and dampened foreign investor sentiment.
Overseas investors have sold more than $18 billion worth of Indian equities this year, putting the market on course for its largest-ever annual outflows.
Reflecting the cautious mood, benchmark equity indices — the BSE Sensex and Nifty 50 — slipped about 0.4% each in early trade.
Traders said the maturity of NDF positions added to near-term dollar demand, intensifying pressure on the rupee. However, intermittent dollar sales by state-run banks, likely on behalf of the Reserve Bank of India (RBI), helped contain sharper losses.
“The rupee’s weakness is being driven primarily by tariff-related concerns and foreign investor selling rather than a deterioration in domestic fundamentals,” said Amit Pabari, Managing Director at CR Forex. “As long as these short-term imbalances persist, pressure could continue.”
Pabari added that 90.00–90.20 remains a key support zone, while 90.80–91.00 acts as an important resistance level in the near term.
Market participants see limited scope for a sustained recovery unless U.S.–India trade negotiations make tangible progress. India’s trade secretary earlier said talks are ongoing and that New Delhi remains engaged with Washington to conclude an agreement “sooner rather than later.”
Despite the rupee’s depreciation, some global brokerages remain constructive on Indian assets. Analysts at JPMorgan said they do not expect the rupee to weaken beyond 92 per dollar in a worst-case scenario, projecting a broad 89–92 range for 2026, and reiterated a positive outlook on Indian equities.
-With Reuters inputs
