RBI may keep interest rate unchanged after Rupee’s depreciation

Authored By Ankur Chandra | Last Modified: Dec 3, 2025 09:30 AM IST

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US equity markets closed the day in green yesterday, 2^nd December, 2025. Nasdaq closed the day, up by 137.75 points or 0.59%. Dow Jones closed the day, up by 185.13 points or 0.39%. S&P 500 closed the day, up by 16.74 points or 0.25%. US markets are expecting that US Federal Reserve may go for a 25 basis point rate cut in its monetary policy meeting on December 9^th and 10^th.

European markets also ended the day mostly in green yesterday. Dax ended the day, up by 121.42 points or 0.51%. Euro stoxx 50 ended the day, up by 18.69 points or 0.33%. FTSE 100 ended the day, down by 0.73 points or .0075%.

Nikkei sharply up today

Nikkei 225 is up sharply today. At 8:30 a.m. IST, 3^rd December, 2025, it is up by 559.49 points or 1.13%. Bank of Japan has said that it may raise interest rate in its upcoming monetary policy meeting in December. Bond prices in Japan fell and yields increased after this statement by the central bank.

Hang Seng is down by 261.96 points or 1% at this time. Shanghai composite is down by 6.20 points or 0.16%. Kospi is up by 39.17 points or 0.98%.

Indian markets likely to see another day in red today

Indian markets are very likely to see a day in red today. Market sentiments have been subdued by rupee’s depreciation against the dollar yesterday. The rupee came very near to the Rs 90 per dollar level. It did not touch the Rs 90 level because of intervention by RBI. The central bank sold dollars to arrest the slide in rupee.

RBI likely to keep interest rate unchanged after the depreciation in rupee

The depreciation in rupee seen yesterday has made it highly likely that the RBI will keep interest rate unchanged in its monetary policy meeting. Its monetary policy meeting will take place between December 3^rd and December 5^th. If the RBI cuts down interest rate, then it will put further downward pressure on rupee. Markets have also started getting anxious once again about the delay in conclusion of Indo – US trade deal.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: Dow Jones

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