The Indian currency closed about 52 paise down against previous close of 89.9650 per US dollar. On Thursday, INR surpassed the previous week’s record low of 90.43 per dollar
The rupee on Thursday closed at a record low of 90.4825 per US dollar, weighed down by the delay in India clinching a tariff deal with the US and importer demand.
The Indian currency (INR) closed about 52 paise down against previous close of 89.9650 per US dollar (USD). On Thursday, INR surpassed the previous week’s record low of 90.43 per dollar.
Thursday’s closing low was also the intraday low. The intraday high was 89.96 per dollar.
Vikram Kasat, Head Advisory, PL Capital, said the Indian rupee weakened further and closed near a record low as a strong dollar and persistent foreign outflows kept pressure on the domestic currency.
With the Fed’s rate cut now digested and domestic cues limited, markets will take direction from global sentiment, currency trends and institutional flows in the near term, he added.
Emkay Global Financial Services, in a report, said: “Currency-related stress should continue to weigh on economic stability, leaving vulnerability elevated through Q1 calendar year 2026.” A trade deal could alleviate pressure on rupee.
Impact on India Inc
Meanwhile, Fitch Ratings observed that most Indian corporates in its rated portfolio either enjoy a degree of natural hedging against movements in the value of the Indian rupee or generally fully, or substantially, hedge their foreign currency obligations.
Nonetheless, in sectors with significant vulnerability to rupee depreciation, the rating agency anticipates that a hypothetical failure by issuers to substantially mitigate foreign-exchange (FX) risks through hedging could put downward pressure on ratings.
Fitch noted that its portfolio of issuers in the renewables, power utility and toll road sectors generally earn revenues in local currency and lack natural hedges, making them more vulnerable to rupee depreciation.
Some companies in these industries have fully or substantially hedged their foreign-currency debt coupon and principal obligations, either via hedging instruments or through maintaining foreign-currency borrowings at less than 20 per cent of consolidated debt, the agency said. Rupee depreciation is unlikely to influence these companies’ ratings.
“Other issuers in these sectors are only partially hedged, for example, with some or all principal repayments being exposed beyond certain levels of exchange-rate movement, although coupon payments are generally fully hedged across issuers.
“Even for these issuers, we do not expect a significant ratings impact if the rupee is marginally weaker than under our rating case, which currently sees the currency at INR87:USD1 by 2026-end, from around INR90:USD1 as of December 9,” said Fitch.
This is largely due to structural protections against FX risk exposures, such as parent company guarantees, interest coverage via intra-company loans, earmarked liquidity for FX outflows, and cash-trap mechanisms.
Published on December 11, 2025
