New Delhi, Dec 16 (KNN) The Indian rupee weakened to document ranges towards the US greenback in late November and early December 2025, with the change charge touching Rs 89.64 per greenback within the third week of November and slipping additional to Rs 90.42 on December 4, the Finance Ministry knowledgeable Parliament.
Responding to a query within the Lok Sabha, Minister of State for Finance Pankaj Chaudhary stated the rupee closed at Rs 89.41 per greenback on November 21, 2025, earlier than extending losses in subsequent periods amid risky world and home situations.
Drivers of Rupee Depreciation
The Authorities attributed the rupee’s decline to a mix of home and world elements, together with actions within the greenback index, capital move tendencies, rate of interest differentials, crude oil worth fluctuations, and the present account deficit.
Throughout FY 2025–26, the depreciation has additionally been influenced by a widening commerce deficit and uncertainty surrounding ongoing trade-related developments between India and the US, alongside comparatively weak capital account inflows.
The Finance Ministry reiterated that the rupee is market-determined, with no mounted goal, band or degree, and that change charge actions mirror broader macroeconomic and world monetary situations relatively than administrative management.
RBI Monitoring and Stabilisation Measures
The Reserve Financial institution of India (RBI), the Minister stated, intently screens the overseas change market and intervenes to handle extra volatility relatively than defend any particular change charge.
The central financial institution tracks world developments reminiscent of financial coverage actions by main central banks, geopolitical occasions, actions in G-10 and rising market currencies, crude oil dynamics and key financial information releases.
To reinforce overseas change inflows, the RBI has launched a number of measures in current months.
These embody extending the utmost reimbursement interval for pre- and post-shipment export credit score from one 12 months to 450 days till March 31, 2026, easing guidelines for merchanting commerce transactions, permitting authorised supplier banks to lend in rupees to residents exterior India in choose neighbouring nations, and allowing surplus balances in Particular Rupee Vostro Accounts to be invested in central authorities securities.
Affect on Economic system and Authorities Evaluation
Addressing issues over the affect of depreciation on India’s world standing, the Finance Ministry stated a weaker foreign money can enhance export competitiveness whereas exerting upward strain on the price of imports. The web affect, it added, relies on the diploma of pass-through of worldwide commodity costs to home inflation.
(KNN Bureau)
Leave a Reply