Rupee slumps 9 paise to close at an all-time low of 90.41 against U.S. dollar — UPSC Current Affairs | December 12, 2025
Rupee slumps 9 paise to close at an all-time low of 90.41 against U.S. dollar
The Indian rupee hit a record low of 90.41 against the U.S. dollar on December 12, 2025, influenced by uncertainty surrounding the India-U.S. trade deal and continuous foreign fund outflows. This depreciation highlights the vulnerability of the rupee to global economic factors and trade-related news.
Overview On December 12, 2025 , the Indian rupee (₹) depreciated to an all-time low, closing at 90.41 against the U.S. dollar ($). This decline of 9 paise was primarily attributed to uncertainty surrounding the anticipated India-U.S. trade deal and persistent foreign fund outflows, which collectively dampened investor sentiment. The currency market experienced increased volatility as traders reacted to these developments. Key Developments Rupee's Performance Depreciation: The rupee depreciated by 9 paise to close at 90.41 against the dollar on December 12, 2025 . Intraday Low: During the trading session, the rupee touched an intraday low of 90.56 against the dollar. Previous Day's Close: On December 11, 2025 , the rupee had closed at 90.32 , marking a 38 paise plunge. Factors Influencing the Rupee India-U.S. Trade Deal: Uncertainty surrounding the trade deal between India and the U.S. weighed heavily on the rupee. Foreign Fund Outflows: Continuous outflows of foreign funds from the Indian market further pressured the rupee. Importer Demand: Aggressive dollar purchases by importers, amidst rising global precious metal prices, added to the rupee's woes. Expert Opinions Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan , noted that the rupee is expected to trade with a negative bias due to the uncertainty over the India-U.S. trade deal. However, he also suggested that improved global sentiments, falling crude oil prices, a weak dollar, and potential central bank intervention could provide support to the rupee at lower levels. Global Market Indicators Dollar Index: The dollar index, measuring the dollar's strength against six major currencies, was up by 0.07% at 98.41 . Brent Crude: Brent crude, the global oil benchmark, traded 0.02% higher at $61.27 per barrel. Domestic Equity Market Sensex: The 30-share benchmark index Sensex jumped 449.53 points to settle at 85,267.66 . Nifty: The Nifty surged 148.40 points to close at 26,046.95 . Foreign Institutional Investors (FIIs) Equity Sales: FIIs sold equities worth ₹2,020.94 crore on December 11, 2025 , according to exchange data. UPSC Relevance This news is relevant to the UPSC syllabus under GS3 (Economy) , specifically concerning exchange rates, foreign investment, and international trade. The factors influencing the rupee's value, such as trade deals and FII activity, are crucial for understanding India's economic dynamics. Additionally, the discussion of global benchmarks like Brent Crude and the Dollar Index highlights the interconnectedness of the Indian economy with global markets. Important Facts for Prelims The rupee's all-time low closing value: 90.41 against the U.S. dollar on December 12, 2025 . The extent of rupee depreciation on December 12, 2025 : 9 paise . Closing value of the rupee on December 11, 2025 : 90.32 . Value of the dollar index on December 12, 2025 : 98.41 . Price of Brent crude oil per barrel: $61.27 . Net value of equities sold by FIIs on December 11, 2025 : ₹2,020.94 crore .