New Delhi, December 11, 2025— The Indian rupee crashed to a historic low of 90.48 against the US dollar in intra-day trade on Thursday as uncertainty over the India-US trade agreement and sharp global market swings triggered heavy selling pressure. The currency, which opened at 89.95 at the interbank foreign exchange market, slipped quickly and marked its steepest fall from Wednesday’s close of 89.87.
Forex traders said renewed doubts over the trade deal’s timeline intensified market anxiety after reports suggested that the agreement may only be completed by March 2026, a date attributed to Chief Economic Advisor V. Anantha Nageswaran. The remarks dampened sentiment and prompted strong dollar demand from importers.
Analysts noted that external factors added to the rupee’s slide. Mexico’s move to impose tariffs of up to 50 per cent on goods from Asian nations, including India, weighed heavily on market confidence. Rising long-term bond yields in the US and Japan sparked global risk aversion, while foreign portfolio investors continued pulling out from India’s debt market. Finrex Treasury Advisors LLP Executive Director Anil Kumar Bhansali said these combined pressures accelerated the rupee’s downfall.
The currency’s drop came despite optimistic comments from US Trade Representative Jamieson Greer, who told a Senate panel that Washington had received its “best ever” offers from India on the proposed Bilateral Trade Agreement. He, however, acknowledged differences over agricultural products like corn, soybeans, wheat and cotton, which remain sticking points in the first-phase negotiations.
Globally, the dollar index softened 0.17 per cent to 98.61 after the US Federal Reserve cut interest rates and signalled a milder policy stance than expected. Brent crude also eased 1.17 per cent to USD 61.48 per barrel in futures trade.
Back home, the equity market showed signs of resilience. The Sensex surged 443.66 points to 84,834.93, while the Nifty advanced 141.05 points to 25,899.05. However, foreign institutional investors continued their exit, selling ₹1,651.06 crore worth of equities on Wednesday.
