Rupee rebounds to 89.96 after intraday 90.43 low

The Rupee rebounded from its all-time low levels and appreciated by 19 paise to close at 89.96 against the U.S. dollar on Thursday, December 4, 2025, helped by a softer U.S. dollar index and reports of the RBI's supposed intervention. Forex traders said the greenback weakened after ADP non-farm payroll data came in sharply below forecast, supporting the rupee at lower levels. The Rupee opened weak at 90.36 and slid to a fresh intraday low of 90.43 before managing to recover to the closing level of 89.96, a rise of 19 paise from its previous close. The rupee had breached the 90-per-dollar mark on Wednesday, December 3, 2025, settling at a fresh all-time low of 90.15 against the greenback. The delay over the India-U.S. trade deal also weighed on sentiment earlier in the week.

At the interbank foreign exchange market, the dollar index was slightly lower at 98.84, while Brent crude rose to ₹62.81 per barrel in futures trade. The fall in the dollar helped the rupee recover, but the overall tone remained cautious as importers kept demand intact and exporters monitored markets for guidance.

Chief Economic Adviser V. Anantha Nageswaran noted that a weakening rupee is not automatically inflationary or favorable for exports. A falling rupee can aid outward shipments but makes imports costlier, potentially raising input costs for import-dependent sectors such as gems and jewelry, petroleum and electronics. The RBI's stance and intervention signals, along with global cues, will likely influence the near-term path for the currency.

Overall, the currency market continues to be sensitive to global cues and policy signals, with traders watching for any further RBI actions and the trajectory of U.S. data and trade deal developments.

Cover image source: Rupee slumps 28 paise to 90.43 against U.S. dollar in early trade 🔗

#RupeeRally #ForexNews #RBIWatch