Rupee Rebounds 49 Paise From Record Lows As Dollar Selling and Softer Crude Offer Relief

November 24, 2025: The rupee made a swift comeback in Monday’s early market session, gaining 49 paise to reach 89.17 against the US dollar, and reversing with one move some of the sharp declines it experienced late last week. The rupee’s improvement was induced by active bank selling of the dollar, a fall in global crude oil prices, and a strong opening of domestic equities.

Rupee Opens Strong After Friday’s Steep Fall

The local currency started at 89.46 before gaining strength to reach 89.17, a significant recovery from its record low closing level of 89.66 on Friday. The previous session witnessed the rupee plunge 98 paise, which was its biggest daily decline in over three years, due to strong demand for dollars, widespread selling in both global and domestic equities, and increased uncertainty related to trade. The last time a similar drop of 99 paise occurred was on February 24, 2022.

RBI Intervention and Market Sentiment Aid Recovery

The recovery was attributed to intervention likely by the Reserve Bank of India, along with lower crude oil prices and improved risk appetite, which have led to the domestic equity market opening higher. The rupee will be under pressure, and the immediate depreciation beyond 90 may be limited after trade negotiations in the next few days, unless no progress is made.

Global Cues and Commodities

The dollar index remained at 100.18, up 0.01 percent. The global crude benchmarks remained subdued, with Brent oil down 0.10 percent at USD 62.50 per barrel, providing the rupee some relief.

Domestic Markets and Flows

In the preliminary trades, the Sensex went up by 218.44 points to 85,450.36, and the Nifty grew by 69.4 points to 26,137.55. On Friday, foreign institutional investors were net sellers worth Rs 1,766.05 crore.

Forex Reserves Strengthen

India’s foreign exchange reserves increased by USD 5.543 billion to USD 692.576 billion for the week ended November 14 after gold reserves witnessed a sharp uptick. The rupee’s recovery on Monday was a welcome relief after it plunged significantly on Friday, as the currency markets follow world risk sentiment, dollar performance, and trade headlines closely.

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