The Crossbill News Desk
The Indian rupee suffered a sharp setback on Friday (November 21, 2025), sliding past the 89-per-dollar threshold for the first time and marking its steepest single-day decline in more than three months.
The currency ended the session provisionally at 89.61 against the U.S. dollar, down 93 paise from the previous close, as global and domestic market sentiment weakened amid renewed trade-related uncertainty, news agency PTI reported.
The day began with the rupee opening at 88.67 in the interbank foreign exchange market. Persistent selling pressure drove it to an unprecedented intra-day low of 89.65 before it settled marginally higher at the provisional closing level. The fall follows Thursday’s loss, when the rupee closed 20 paise lower at 88.68.
With this decline, the rupee surpassed its earlier all-time intra-day low of 88.85 recorded on September 30 and its previous lowest closing of 88.81 on October 14. The last comparable sharp intraday depreciation occurred on July 30 when it fell 89 paise.
Forex analysts pointed to heavy selling in global IT counters and heightened risk aversion as major triggers. Anindya Banerjee, Head of Research Currency, Commodity and Interest Rate Derivatives at Kotak Securities, said the global risk-off sentiment has spilt into currency markets after a sharp overnight sell-off in cryptocurrencies and AI-linked technology stocks.
"The sudden unwinding of risk trades is weighing on emerging-market currencies, including the Indian rupee. Adding to the pressure is the lingering uncertainty around the proposed India-U.S. trade deal, which markets had hoped would offer clarity on the bilateral economic outlook. With no firm timelines emerging, sentiment remains fragile," Mr. Banerjee told PTI.
Reserve Bank Governor Sanjay Malhotra, speaking on Thursday (November 20, 2025), reiterated that the RBI does not pursue a fixed exchange rate target and attributed the latest weakness to trade pressures following U.S. tariff actions.
"We do not target any level. Why is the rupee depreciating? [It] is because of the demand. It is for the markets to decide... It is a financial instrument, and there is a demand for dollars, and if the demand for dollars goes up, the rupee depreciates; and if the demand for the rupee goes up, the dollar comes down, then it appreciates," he said.
The Governor also expressed optimism that a successful trade agreement with the U.S. will eventually ease pressure on the current account.
Meanwhile, the dollar index rose 0.09% to 100.17, while Brent crude futures traded 2.18% lower at $62 per barrel.
Dampened global sentiment weighed on domestic equities as well. The Sensex dropped 400.76 points, or 0.47%, to close at 85,231.92, and the Nifty fell 124 points, or 0.47%, to 26,068.15. Despite the downturn, foreign institutional investors remained net buyers, purchasing equities worth ₹283.65 crore on Thursday, according to exchange data.
Adding to the subdued economic backdrop, fresh government numbers showed that growth in the country’s eight core sectors was stagnant in October on a year-on-year basis.
Gains in petroleum refinery products, fertiliser, and steel output were offset by declines in coal and electricity production. The eight infrastructure industries had expanded by 3.3% in September and 3.8% in October 2024.
The currency ended the session provisionally at 89.61 against the U.S. dollar, down 93 paise from the previous close, as global and domestic market sentiment weakened amid renewed trade-related uncertainty, news agency PTI reported.
The day began with the rupee opening at 88.67 in the interbank foreign exchange market. Persistent selling pressure drove it to an unprecedented intra-day low of 89.65 before it settled marginally higher at the provisional closing level. The fall follows Thursday’s loss, when the rupee closed 20 paise lower at 88.68.
With this decline, the rupee surpassed its earlier all-time intra-day low of 88.85 recorded on September 30 and its previous lowest closing of 88.81 on October 14. The last comparable sharp intraday depreciation occurred on July 30 when it fell 89 paise.
Forex analysts pointed to heavy selling in global IT counters and heightened risk aversion as major triggers. Anindya Banerjee, Head of Research Currency, Commodity and Interest Rate Derivatives at Kotak Securities, said the global risk-off sentiment has spilt into currency markets after a sharp overnight sell-off in cryptocurrencies and AI-linked technology stocks.
"The sudden unwinding of risk trades is weighing on emerging-market currencies, including the Indian rupee. Adding to the pressure is the lingering uncertainty around the proposed India-U.S. trade deal, which markets had hoped would offer clarity on the bilateral economic outlook. With no firm timelines emerging, sentiment remains fragile," Mr. Banerjee told PTI.
Reserve Bank Governor Sanjay Malhotra, speaking on Thursday (November 20, 2025), reiterated that the RBI does not pursue a fixed exchange rate target and attributed the latest weakness to trade pressures following U.S. tariff actions.
"We do not target any level. Why is the rupee depreciating? [It] is because of the demand. It is for the markets to decide... It is a financial instrument, and there is a demand for dollars, and if the demand for dollars goes up, the rupee depreciates; and if the demand for the rupee goes up, the dollar comes down, then it appreciates," he said.
The Governor also expressed optimism that a successful trade agreement with the U.S. will eventually ease pressure on the current account.
Meanwhile, the dollar index rose 0.09% to 100.17, while Brent crude futures traded 2.18% lower at $62 per barrel.
Dampened global sentiment weighed on domestic equities as well. The Sensex dropped 400.76 points, or 0.47%, to close at 85,231.92, and the Nifty fell 124 points, or 0.47%, to 26,068.15. Despite the downturn, foreign institutional investors remained net buyers, purchasing equities worth ₹283.65 crore on Thursday, according to exchange data.
Adding to the subdued economic backdrop, fresh government numbers showed that growth in the country’s eight core sectors was stagnant in October on a year-on-year basis.
Gains in petroleum refinery products, fertiliser, and steel output were offset by declines in coal and electricity production. The eight infrastructure industries had expanded by 3.3% in September and 3.8% in October 2024.
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