The Indian rupee slipped to a new record low on November 21, 2025, weakening to around ₹89.64 per US dollar in early trade. The currency has been under sustained pressure over the past month, depreciating nearly 1.8% from the ₹88 level as global currency trends shifted sharply in favor of the US dollar.
Fresh data from the United States showed an unexpected pickup in hiring, with non-farm payroll additions hitting 119,000 in September — more than double market expectations. Even though the unemployment rate edged up slightly from 4.3% to 4.4%, traders interpreted the stronger job growth as a sign that the Federal Reserve may delay expected rate cuts, boosting the dollar’s strength globally.
Rahul Kalantri, VP–Commodities at Mehta Equities Ltd., noted that weak risk sentiment, coupled with lingering U.S.–India trade tensions, contributed to the rupee’s slide.
He said:
“The rupee tanked to an all-time low as the dollar index climbed above 100 on the back of robust U.S. data and hawkish Fed commentary. Foreign outflows and global uncertainty added to the pressure.”
Foreign investors have already pulled out $16.5 billion from Indian equities in 2025, making the rupee one of the weakest Asian currencies this year.
Kalantri warned that the weekly close above ₹89.20 signals further downside:
“We expect depreciation toward ₹90.40 and even ₹91, unless we see strong support near ₹88.45.”
Meanwhile, the Japanese yen’s sharp decline has further fueled the dollar rally. The yen slid to a 10-month low near 157.78 per dollar as investors worried over a massive stimulus plan being prepared by Prime Minister Sanae Takaichi. Borrowing costs in Japan surged, sparking market jitters.
Amit Pabari, MD & CEO at CrForex Advisors, explained that the yen — a major component of the dollar index — has fallen nearly 6% since Takaichi took office, magnifying the dollar’s global rise.
He added:
“As the dollar strengthens, emerging market currencies like the rupee inevitably absorb the impact.”
Despite the decline, authorities remain calm.
RBI Governor Sanjay Malhotra assured that India has strong forex reserves and emphasized that the depreciation is mainly trade-related, tied to pending tariff issues with the US. He expressed optimism that a favorable trade agreement could soon ease the pressures on the rupee.
By
