Overview On November 28, 2025 , the Indian rupee experienced a depreciation, settling at 89.43 (provisional) against the U.S. dollar. This movement was influenced by a strengthening U.S. dollar, an increase in crude oil prices in the international market, and subdued domestic equity market sentiment. The withdrawal of foreign funds further contributed to the rupee's weakness. Key Developments Rupee Performance The rupee opened at 89.41 and touched an intra-day low of 89.49 against the dollar. It ultimately settled at 89.43 (provisional), reflecting a loss of 7 paise from the previous day's close. On Thursday , the rupee had depreciated by 14 paise to settle at 89.36 against the U.S. dollar. Expert Analysis Anuj Choudhary , Research Analyst at Mirae Asset ShareKhan, noted that the rupee traded negatively due to a recovery in the US dollar index and mixed domestic markets. He also highlighted the impact of Foreign Institutional Investors (FIIs) outflows and rising crude oil prices. Choudhary anticipates a slight positive bias for the rupee, driven by expectations of a rate cut by the Federal Reserve in December and easing geopolitical tensions. He projects a trading range of 89.25 to 89.70 for the USD-INR spot price. Broader Economic Context The finance ministry's monthly economic review for October indicated that the rupee's 3.5% depreciation against the dollar from the end of March to the end of October 2025 aligned with broader emerging-market currency trends. Global Market Factors The dollar index, measuring the greenback's strength against six currencies, was 0.18% higher at 99.69 . Analysts attributed the dollar's strength to increased demand from importers and banks for month-end trade payment settlements. Brent crude, the global oil benchmark, rose 0.27% to $63.51 per barrel in futures trade. Domestic Equity Market The Sensex dipped marginally by 13.71 points to settle at 85,706.67 . The Nifty slipped 12.60 points to 26,202.95 . FIIs sold equities worth ₹1,255.20 crore on a net basis on Thursday. UPSC Relevance This news is relevant for the UPSC Civil Services Exam, particularly for GS3 (Economy) . It covers key economic indicators such as currency exchange rates, crude oil prices, and stock market performance. Understanding these factors is crucial for analyzing India's economic stability and global economic interactions. Key Concepts for UPSC Rupee Depreciation: Factors influencing the value of the Indian rupee and its impact on trade and inflation. Dollar Index: Understanding the strength of the US dollar and its implications for global markets. FII Flows: The role of foreign investment in the Indian economy and its effect on market volatility. Crude Oil Prices: The impact of global oil prices on India's import bill and inflation.