The Indian rupee plunged to a record low on December 3, slipping past the crucial ₹90-per-US dollar threshold for the first time. The currency touched 90.13, falling beyond the previous day’s all-time low of 89.9475. Weak trade inflows, muted portfolio investments and uncertainty surrounding the India–US trade agreement contributed to the continued pressure.
The sharp fall triggered volatility across domestic markets. The Nifty briefly dropped below the 26,000 mark, while the Sensex declined by nearly 200 points in early trade, reflecting growing investor caution. The rupee’s steep slide has raised fresh concerns about inflation and future foreign fund flows, with market sentiment expected to stay fragile until the currency shows signs of stabilising.
Experts noted that a substantial recovery in the rupee now depends on progress in the upcoming India–US trade pact. They believe the currency may stabilise or even strengthen once the agreement is finalised, with the extent of improvement hinging on the tariff framework and terms negotiated between New Delhi and Washington.
