13
Rupee Recovery: After reaching its all-time low on Wednesday, it seemed to be recovering a little today i.e. on Thursday. Know the reason behind this.
04 December, 2025
Rupee Recover: The Indian rupee finally came out of its declining wave on Thursday. After touching record low, the rupee strengthened by 19 paise and closed at 89.96 per dollar. This recovery was both interesting and relieving for many reasons. In fact, according to Forex traders, the US ADP non-farm payroll data came in much weaker than expected, due to which the dollar index showed weakness. This weakness became support for the rupee at low levels. Apart from this, it was also said in the reports that RBI’s intervention helped in stopping the fall of the rupee.
weak start
The rupee opened weak at 90.36 on Thursday morning and slipped to a new all-time low of 90.43 in early trade. Selling by foreign investors and rising prices of crude oil had already made the atmosphere heavy. On top of this, the delay in the announcement of India-US trade deal also further weakened the market sentiment. However, at the end of the day the picture changed and the rupee stabilized at 89.96. Whereas, a day earlier on Wednesday, the rupee had closed above 90 for the first time.
Also read: India’s record jump: 8.2% growth in GDP in the second quarter, economy brightened due to GST cut.
Impact on GDP
Economic advisor V. Anantha Nageswaran said on Wednesday that the fall of the rupee is neither having a major impact on inflation nor on exports. However, due to costlier imports, there may be pressure on sectors like gems and jewellery, petroleum and electronics. On the other hand, the dollar index remained with a slight decline at 98.84. At the same time, Brent crude increased by 0.22 percent at $ 62.81 per barrel. However, according to research analyst Anuj Chaudhary, continuous selling by FIIs, weak trend of the domestic market and increased crude prices can keep pressure on the rupee. But weak US data and expectations of Fed’s rate cut in December may support the rupee at lower levels.
RBI policy
The 6-member committee of RBI will announce its policy on Friday. This meeting is taking place at a time when GDP growth is better than expected. At the same time, inflation is falling and political tensions remain constant. At the same time, the latest HSBC India Services PMI increased to 59.8 in November, which is an indication of strong new demands.
stock market
In the domestic market, Sensex rose 158.51 points to close at 85,265.32, while Nifty rose 47.75 points to 26,033.75. On Wednesday, foreign investors had made a huge sale of Rs 3,206 crore. Overall, this recovery of the rupee may provide relief, but market movements and global trends show that the situation is still sensitive. In such a situation, the decisions of RBI and economic signals from America in the coming days will decide whether the rupee becomes stable again or new fluctuations will be seen in it.
