The rupee fell to 91.0750 per dollar before ending 0.3% lower at 91.0275. It has declined over 6% against the greenback this year and is among the worst performing emerging market currencies in 2025.
The South Asian unit hit an all-time low for the fourth consecutive session, with traders anticipating that the central bank may step in more aggressively to avoid a speculative build-up against the currency.
A rebound in the rupee is considered unlikely without a breakthrough in U.S.-India trade negotiations.
India’s exports leapt in November in defiance of steep U.S. tariffs, providing fresh leverage in ongoing trade talks with Washington and easing pressure on New Delhi to strike a quick deal.
“Looking ahead, the base case is for ‘mild, not wild’ depreciation of the INR against the USD. The INR is projected at 90/USD by June 2026 and 92/USD by June 2027, with the pace of depreciation dependent on evolution of capital flows and global risk appetite,” Axis Bank said in a note on Tuesday.
Foreign investors have net sold over $18 billion of local stocks so far in 2025. The a risk-off mood in global markets also singed Indian stocks on Tuesday, dragging down the benchmark Nifty 50 by 0.6%.Investors are treading lightly ahead of a slate of U.S. data later in the day that will help gauge the U.S. rate trajectory next year.
MSCI’s gauge of Asian equities outside of Japan fell over 1%, while regional currencies were mixed and the dollar was steady against a basket of major peers.
