Indian Rupee Breaches Critical 90-per-Dollar Mark for the First Time Amid Trade Deal Uncertainty and FII Exodus

The Indian rupee experienced a sharp decline on Wednesday, slipping past the crucial 90-per-dollar level for the first time ever to hit a new all-time low of 90.13 against the US dollar; the currency’s continuous pressure stems from a combination of weak trade flows, sustained portfolio outflows (FII selling), and growing uncertainty over the India-US trade deal, leading analysts to believe the rupee’s reversal hinges on the materialization of the trade agreement this month.

Market Indicator	Current Status (Dec 3, 2025)	Impact/Trend
Rupee (INR)	New record low: 90.13/$	Broke previous low of 89.9475; seen as a critical psychological and trading threshold.
Nifty Index	Slipped below 26,000 mark	Reflects cautious sentiment as currency weakness raises inflation and FII activity concerns.
Sensex	Dropped nearly 200 points in early trade (Recovered later to 85,151)	Initial pressure from currency depreciation; FII selling is overriding strong fundamentals like corporate earnings and GDP growth.
RBI Intervention	Not intervening aggressively	Analysts note the RBI is “not intervening to support the rupee,” fueling fears of further depreciation and driving FIIs to sell.