The Indian rupee began trading against the US dollar on Monday at 89.54, down 0.3% from Friday’s finish of 89.27, following a week of fluctuations. The native currency struck a record low of 91.08 versus the US dollar last week, on December 16, 2025, after breaking through the psychologically significant 91 mark.
The rupee gained about 2% in just three days following the breach, peaking at 89.25 on December 19. According to traders, the Reserve Bank of India’s aggressive dollar sales by state-run banks were a major factor in the recovery.
In the meantime, India’s foreign exchange reserves increased by $1.689 billion to $688.949 billion in the week ending December 12, according to the RBI on December 19. The total amount of foreign exchange reserves rose by $1.033 billion to $687.26 billion over the previous reporting week.
According to preliminary data available on the NSE for December 19, domestic institutional investors sold stocks worth Rs 24,508 cr, while FIIs were net buyers of Indian shares worth Rs 26,896 cr.
The justification for a rate reduction is strengthened by India’s comparatively low inflation when compared to its counterparts. A greater likelihood of relaxing has also been suggested by analysts. however much would rely on the completion of a trade agreement with the US. According to analysts, the rupee’s decline is probably going to continue because of the RBI’s market-based activities.
