India Rupee Review
Slightly down as importers buy dollars; RBI limits fall
This story was originally published at 16:58 IST on 26 November 2025
Register to read our real-time news.Informist, Wednesday, Nov. 26, 2025
By Rati Chaphekar
MUMBAI – The rupee ended slightly lower against the dollar Wednesday due to persistent dollar purchases by importers, dealers said. However, losses for the Indian unit were limited as some state-owned banks sold dollars, likely on behalf of the Reserve Bank of India, dealers said.
"The rupee was steady around 89.24-89.25 (a dollar)," a dealer at a state-owned banks said. "Even though there was demand (for dollars), central bank's selling (of dollars) held rupee tight on that level."
After moving in a range of just 11 paise during the day, the rupee ended at 89.2700 a dollar, slightly lower than 89.2200 on Tuesday.
The rupee started the day broadly steady against the dollar amid dull volume. Some public sector banks stepped in to sell dollars soon after the market opened, around 89.28 level, most likely on behalf of the RBI, dealers said. The central bank has been intervening around these levels since Monday, they said. The domestic currency touched a high 89.1725 earlier in the day, likely due to the central bank's support.
Dealers expect the apex bank to continue intervening to support the rupee until a trade deal between India and the US is signed, especially after it allowed the Indian currency to slump last week and hit a record low of 89.4950. The US has imposed a 50% tariff on imports from India, 25% of which was due to India's oil purchase from Russia. Both the countries have held several rounds of negotiations to clinch a trade deal but have failed to reach any conclusion to date.
However, banks bought dollars for importers, who were wary of further depreciation of the Indian unit, which pushed the Indian unit slightly lower against the dollar, dealers said. So far this month, the rupee has declined 0.6% against the dollar.
Meanwhile, the dollar index fell after subdued US economic data reinforced expectation of a December rate cut by the US Federal Reserve, which supported the domestic unit, dealers said. "The fall in dollar should be giving RBI some relief now. They (RBI) will not have to spend dollars if this fall continues," a dealer at a private-sector bank said.
US retail sales rose 0.2% in September, less than the market estimate of 0.4%, according to economists polled by Reuters. Adding to it, the US consumer confidence index reading dropped to 88.7 in November from an upwardly revised 95.5 in October. Economists polled by Reuters had forecast a reading of 93.4 for November.
Fed fund futures traders are now pricing in an 84.3% chance of a 25-basis-point cut at the December meeting, up from 35% last week. At 1530 IST, the dollar index, which measures the strength in the dollar against a basket of six major currencies, was at 99.79, steady from Tuesday but down from 100.18 on Monday.
Further, a sharp rise in domestic equities also supported the Indian unit, dealers said. On Wednesday, both the Sensex and Nifty 50 ended 1.2% higher each.
|
|
AT 1530 IST |
AT 0900 IST |
HIGH |
LOW |
PREVIOUS (AT 1530 IST) |
|
Spot rupee per $1 |
89.2700 | 89.2500 | 89.1725 | 89.2800 | 89.2200 |
|
1-year dlr/rupee fwd (paise) |
197.50 | 197.50 | 198.00 | 197.00 | 197.50 |
FORWARDS
The one-year dollar-rupee forward premium ended steady as traders await the interest rate decision by the RBI's Monetary Policy Committee and the US Federal Open Market Committee next month, dealers said.
The US FOMC's December meeting outcome is due on Dec. 10 while the RBI's MPC outcome is due on Dec. 5. Expectation of a rate cut by the RBI's rate-setting panel next month have increased after RBI Governor Sanjay Malhotra recently said that none of the economic data released after the last policy review had reduced the scope for further rate cuts in India. Bets of a rate cut by the Fed next month have also picked up.
At 1530 IST, the one-year exact period dollar/rupee forward premium was 2.20%, unchanged against the previous close. On an absolute basis, the premium was 197.50 paise, unchanged from Tuesday's close.
OUTLOOK
On Thursday, the rupee is likely to take cues from movement in the dollar index and the Asian currencies, dealers said. Most dealers expect the RBI to continue intervening actively in the currency market to protect the rupee from falling to a lifetime low and testing the psychologically-crucial 90-per-dollar mark.
Market participants will also continue to watch developments related to the India-US trade deal talks. "Some relief may come from possible positive FII inflows, with secondary markets turning sharply higher as the benchmark index jumped 1.24% today. This improved risk sentiment helped limit deeper losses in the rupee," said Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities, in a note.
Dealers expect importers to continue buying dollars at every dip in the dollar-rupee rate, which would keep downward pressure on the local currency intact. The rupee is expected to move in a range of 89.00 to 89.40 against the dollar. Immediate technical resistance for the rupee is pegged at 89.00 per dollar and support at 89.30.
India Rupee - World FX: New Zealand dlr up on likely end to rate cut cycle
| AT 1427 IST | HIGH | LOW | PREVIOUS | |
| GBP/USD | 1.3170 | 1.3198 | 1.3158 | 1.3164 |
| EUR/USD | 1.1569 | 1.1597 | 1.1564 | 1.1569 |
| NZD/USD | 0.5677 | 0.5696 | 0.5615 | 0.5618 |
| AUD/USD | 0.6496 | 0.6512 | 0.6467 | 0.6469 |
| USD/JPY | 156.4570 | 156.4930 | 155.6550 | 156.0350 |
| USD/CAD | 1.4079 | 1.4105 | 1.4068 | 1.4097 |
| EUR/JPY | 181.0090 | 181.2700 | 180.3000 | 180.5170 |
| CHF/USD | 1.2400 | 1.2435 | 1.2374 | 1.2378 |
| EUR/CHF | 0.9329 | 0.9348 | 0.9323 | 0.9344 |
MUMBAI – The New Zealand dollar surged over 1% against the greenback after the Reserve Bank of New Zealand cut its benchmark official cash rate by 25 basis points to 2.25% Wednesday, its lowest level since mid-2022, but policymakers signalled a potential end to the policy easing cycle as the economy showed early signs of picking up. New Zealand's central bank is now forecasting the cash rate will be at 2.20% in the first quarter of 2026 and 2.65% in the fourth quarter of 2027.
The Australian dollar rose 0.5% against the greenback after data released Wednesday showed Australia's consumer prices rose at a faster-than-expected pace in October, suggesting a pick-up in inflation that reinforced bets that the current policy easing cycle could well be over. Monthly consumer price index rose 3.8% on year in October, up from 3.6% in September and above median forecasts of 3.6%.
The Japanese yen fell 0.2% against the greenback even after Japan's Prime Minister Sanae Takaichi Wednesday said the government stands ready to take "necessary" action in the market with a close eye on whether exchange rate moves reflect economic fundamentals or are driven by speculative action. "We will closely monitor market moves, including those of Japanese government bond yields and exchange rates," Takaichi told Parliament according to a report by Reuters.
The dollar index fell on Wednesday after subdued US economic data reinforced expectation of a December rate cut by the US Federal Reserve. At 1427 IST, the dollar index, which measures the strength in the dollar against a basket of six major currencies, was at 99.78, steady against 99.79 Tuesday but lower from 100.18 Monday.
US retail sales rose 0.2% in September, less than the market estimate of 0.4%, according to economists polled by Reuters. Adding to it, the US consumer confidence index reading dropped to 88.7 in November from an upwardly revised 95.5 in October. Economists polled by Reuters had forecast a reading of 93.4 for November. Fed fund futures traders are now pricing in an 84.3% chance of a 25-basis-point cut at the December meeting, up from 35% last week.
The euro traded steady against the greenback while the pound sterling rose 0.1% ahead of the announcement of the UK's much awaited annual budget, later in the day. UK Finance Minister Rachel Reeves is expected to announce a round of hefty tax increases in the upcoming budget. (Rati Chaphekar)
India Rupee: Fwd premium steady as traders await RBI's MPC, FOMC decision
|
AT 1350 IST |
AT 0900 IST |
HIGH |
LOW |
PREVIOUS (AT 1530 IST) |
|
|
Spot rupee per $1 |
89.2650 | 89.2500 | 89.2800 | 89.1725 | 89.2200 |
|
1-year dlr/rupee fwd (paise) |
198.00 |
197.50 | 198.00 | 197.50 | 197.50 |
MUMBAI – The one-year dollar-rupee forward premium was broadly steady as traders await the interest rate decision by the Reserve Bank of India's Monetary Policy Committee and the US Federal Open Market Committee next month, dealers said. "The market will move after the outcome of both the central bank's (the RBI and the US Fed) monetary policy committee meeting," a dealer at a state-owned bank said. "Till then there are no cues that will affect the market."
The US FOMC's December meeting outcome is due on Dec. 10 while the RBI's MPC outcome is due on Dec. 5. Expectation of a rate cut by the RBI's rate-setting panel next month have increased after RBI Governor Sanjay Malhotra recently said that none of the economic data released after the last policy review had reduced the scope for further rate cuts in India.
Further, along with recent Fed officials' comments, data released Tuesday also boosted hopes of a rate cut by the US Fed next month. US retail sales rose 0.2% in September, less than the market estimate of 0.4%, according to economists polled by Reuters. Adding to it, the US consumer confidence index reading dropped to 88.7 in November from an upwardly revised 95.5 in October. Economists polled by Reuters had a forecast a reading of 93.4 for November.
Fed fund futures traders are now pricing in an 84.3% chance of a 25-basis-point cut at the December meeting, up from 35% last week. At 1350 IST, the one-year exact period dollar/rupee forward premium was 2.20%, broadly steady against the previous close of 2.21%. On an absolute basis, the premium was 197.00 paise, against Tuesday's close of 197.50 paise. (Rati Chaphekar)
India Rupee: Tad down as importers buy dlrs; likely RBI dlr sales limit fall
| AT 1320 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.2625 | 89.2500 | 89.1725 | 89.2800 | 89.2200 |
MUMBAI – The rupee fell slightly against the dollar as banks bought dollars on behalf of importers, who were wary of further depreciation in the local unit, dealers said. "There were very few bids (dollar buying) in the morning," a dealer at a private-sector bank said. "But importers started buying (dollars) later as RBI's (dollar) sales didn't lead to any appreciation of the rupee."
The Reserve Bank of India likely intervened through dollar sales earlier in the day, at around 89.28 a dollar, which prevented the Indian unit from falling further, dealers said. The central bank has been intervening around these levels since Monday, they said. The domestic currency touched a high 89.1725 earlier in the day, likely due to the central bank's support.
Meanwhile, the dollar index fell sharply after a slew of US economic data strengthened the case for a rate cut by the US Federal Reserve in December, which provided some support to the Indian unit, dealers said. US retail sales and consumer confidence were well below market expectations, hinting at a sluggish economy. Fed fund futures traders are now pricing in an 84.3% chance of a 25-basis-point cut at the December meeting, up from 35% last week. At 0932 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 99.62, lower than 99.79 Tuesday and 100.18 Monday.
The Indian currency was also supported by a rise in other Asian peers, tracking the slump in the dollar index. The Taiwanese dollar was the best performer with a rise of 0.3%.
For the rest of the day, the rupee is seen moving between 89.00 and 89.40 against the greenback. Dealers peg immediate technical support for the rupee at 89.30 a dollar. (Rati Chaphekar)
India Rupee: Technical levels for rupee - Nov 26
MUMBAI – At 1105 IST, the rupee was at 89.2400 per dollar. At 0900 IST, the rupee was at 89.2500 a dollar, against the previous close of 89.2200 a dollar. Following are the key support and resistance levels for the rupee as provided by leading banks and brokerages:
| Participants | S2 | S1 | R1 | R2 |
| State-owned bank | 89.50 | 89.30 | 89.10 | 89.00 |
| Brokerage firm | 89.40 | 89.30 | 89.15 | 89.10 |
| Brokerage firm | 89.60 | 89.31 | 89.01 | 88.80 |
(Rati Chaphekar)
India Rupee: Steady as RBI's dollar sales offset importer buys; volumes dull
| AT 0951 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 89.1975 | 89.2500 | 89.1725 | 89.2800 | 89.2200 |
MUMBAI – The rupee traded broadly steady against the dollar in dull trade as some public sector banks sold dollars, most likely on behalf of the Reserve Bank of India, which offset the impact of dollar buying by importers, dealers said. "Importer demand is there in the market, but less than usual," a dealer at a state-owned bank said. "Current levels are quite inflated, people are expecting rupee to rise to 89.10 (a dollar) at least."
The central bank has intervened heavily in the market since Monday, pushing the rupee upwards to prevent it from approaching its record low level. The rupee hit a lifetime low of 89.4950 a dollar Friday. Some dealers speculate that the apex bank might continue selling dollars and drive the local currency upwards until a trade deal between India and the US is signed. The US has imposed a 50% tariff on imports from India, 25% of which is due to India's oil purchase from Russia. Both countries have held several rounds of negotiations to crack a trade deal but have failed to reach any conclusion to date.
Meanwhile, the dollar index fell sharply after a slew of US economic data strengthened the case for a rate cut by the US Federal Reserve in December, which provided some support to the Indian unit. US retail sales and consumer confidence were well below market expectations, hinting towards a sluggish economy. At 0932 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 99.62, lower than 99.79 Tuesday and 100.18 Monday. Fed fund futures traders are now pricing in an 84.3% chance of a 25-basis-point cut at the December meeting, up from 35% last week.
The Indian unit was also supported by a rise in its other Asian peers, tracking the slump in the dollar index. The Taiwanese dollar was the best performer with a rise of 0.3%. For the rest of the day, the rupee is seen moving between 88.80 and 89.30 against the greenback. Dealers peg immediate technical resistance for the rupee at 89.10 a dollar. (Rati Chaphekar)
India Rupee - Asia FX: Most up as dollar index slumps on Fed rate cut hopes
MUMBAI – Most Asian currencies rose against the dollar, tracking a fall in the dollar index. A series of weak economic data released Tuesday cemented hopes of a rate cut by the US Federal Reserve in December, which put the dollar index under pressure. At 0910 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 99.63, lower than 99.79 Tuesday and 100.18 Monday. Fed fund futures traders are now pricing in an 84.3% chance of a 25-basis-point cut at the December meeting, up from 35% last week.
The producer price index in the US increased 0.3% in September, in line with market expectations, after falling 0.1% in August. Retail sales in the country rose 0.2% in September, lower than the market estimate of 0.4%, as per economists polled by Reuters. Additionally, the US consumer confidence index reading dropped to 88.7 in November from an upwardly revised 95.5 in October. Economists polled by Reuters had a forecast a reading of 93.4 for November.
Tracking the fall in the dollar index, the Taiwanese dollar rose 0.3% against the greenback, while the South Korean won and the Philippine peso rose 0.2% and 0.1%, respectively. The Chinese yuan, the Malaysian ringgit, and the Thai baht traded steady against the dollar. Bucking the trend, the Indonesian rupiah fell 0.1% against the greenback. (Rati Chaphekar)
India Rupee: Expected range for rupee - Nov 26
MUMBAI – Following are the expected support and resistance levels for the rupee on Wednesday, as forecast by leading banks and brokerages in an Informist poll:
| PARTICIPANT | SUPPORT | RESISTANCE |
| State-owned bank | 89.30 | 89.05 |
| Private-sector bank | 89.40 | 89.10 |
| Brokerage firm | 89.35 | 89.10 |
| Brokerage firm | 89.31 | 89.01 |
(Rati Chaphekar)
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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