Amid negative cues from domestic and global equity markets due to trade uncertainties, the rupee on Friday (November 21, 2025) breached the 89-mark against the dollar and fell by 89 paise for the first time and closed at 89.61 (provisional) during the session.
Forex analysts attributed the sharp fall in the Indian currency to heavy selling in global IT stocks amid risk-off sentiment and lack of clarity on the proposed India-US trade deal.
At the interbank forex market, the rupee opened at 88.67 and touched its lowest intra-day level of 89.65 before ending the session at 89.61 (provisional) against the American currency, registering a loss of 93 paise from its previous close.
On Thursday (November 20, 2025), the rupee fell 20 paise to close at 88.68 against the US dollar.
The unit had recorded its previous all-time intra-day low of 88.85 on September 30. The previous lowest closing level was 88.81 against the US dollar on October 14.
Earlier, such a big fall in the Indian currency was seen intra-day on July 30 when it fell by 89 paise.
Anindya Banerjee, head of research currency, commodity and interest rate derivatives at Kotak Securities, said the global risk-off sentiment has spread to currency markets following sharp overnight selling in cryptocurrencies and AI-linked technology stocks.
“The sudden end to risk-on trades is weighing on emerging market currencies, including the Indian rupee. The pressure is rising due to uncertainty over the proposed India-US trade deal, which markets had hoped would provide clarity on the bilateral economic outlook. The sentiment remains fragile with no concrete timeline in sight,” Mr Banerjee said.
Reserve Bank Governor Sanjay Malhotra on Thursday (November 20, 2025) said the central bank does not set any level target for the rupee, and the recent depreciation of the domestic currency against the US dollar is mainly due to trade uncertainties after the imposition of tariffs by the US administration.
“We do not target any level. Why is the rupee falling?” [It] Is due to demand. It is for the market to decide… It is a financial instrument, and there is demand for the dollar, and if the demand for the dollar increases, the value of the rupee decreases; And if demand for the rupee goes up, the dollar comes down, it appreciates,” Mr Malhotra said at an event in the national capital.
The Governor also expressed confidence that India will achieve a favorable trade agreement with the US, which will help ease pressure on the current account.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.09% at 100.17.
Global oil benchmark Brent crude was trading 2.18% lower at $62.00 a barrel in futures trade.
On the domestic equity market front, Sensex fell 400.76 points or 0.47% to close at 85,231.92, while Nifty fell 124.00 points or 0.47% to 26,068.15.
According to exchange data, foreign institutional investors bought equities worth ₹283.65 crore on a net basis on Thursday (November 20, 2025).
Government data released on Thursday (November 20, 2025) showed that the pace of growth in the country’s eight core infrastructure sectors remained stable year-on-year in October as expansion in production of petroleum refinery products, fertilizers and steel was balanced by contraction in coal and power generation.
The eight core industries of coal, crude oil, natural gas, petroleum refinery products, power, fertilizers and steel had expanded by 3.3% in September and 3.8% in October 2024.
published – November 21, 2025 05:08 PM IST
