Rupee Ends Marginally Lower At 89.23 Against US Dollar in Range-Bound Session

November 25, 2025: The rupee edged lower on Wednesday, slipping one paisa to close at ₹89.23 against the US dollar in a volatile, range-bound session. Support from strong domestic equities and softer global crude prices helped limit the decline, while a firmer dollar and cautious market sentiment weighed on the local currency.

Narrow Trading Band Even in the Face of Global Uncertainty

In the interbank market, the rupee oscillated between ₹89.17 and ₹89.28, finally settling at ₹89.23, just below Tuesday’s close. Traders noted that foreign fund outflows and lingering geopolitical concerns dampened risk appetite, prompting investors to seek safe-haven assets.

Market Confluencing Factors in the Rupee

Market optimism was supported by growing expectations of a potential US Federal Reserve rate cut in December, alongside relief from lower crude prices. Brent crude futures dipped 0.13% to USD 62.40 per barrel, easing trade deficit concerns, while the Dollar Index, tracking the US currency against six major counterparts, inched up 0.12% to 99.70.

Domestic Equities Hold the Currency

Indian equities staged a strong rebound, helping cushion the rupee’s decline. The Sensex surged 1,022.50 points (1.21%) to close at 85,609.51, while the Nifty gained 320.50 points (1.24%) to finish at 26,205.30. Foreign institutional investors emerged as net buyers, investing Rs 785.32 crore in equities on Tuesday.

Outlook

Analysts expect the rupee to maintain a mild positive bias in the near term, supported by improving global risk sentiment and rising expectations of a US Federal Reserve rate cut. However, strong import-driven demand for the US dollar could cap significant gains. The USD–INR pair is likely to trade within a range of 89.00 to 89.50 in the coming days.

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