The Indian rupee plunged to a record low on Monday (Dec 15) against the US dollar as the uncertainty looms over the India-US trade deal after several rounds of negotiation between both sides and sustained outflow of foreign capital. The rupee slipped 0.2 per cent to touch an all-time low of 90.71, surpassing the previous record of 90.49 on Friday.&nbsp;The Indian currency emerged as Asia's worst performer this year, having declined by nearly 6% year-to-date against the Dollar due to high US tariffs up to 50 per cent on Indian goods to its biggest export destinations and persistent foreign equity outflow.&nbsp;According to the forex traders, the rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach.&nbsp;Foreign investors turned net sellers this year as they have sold Indian stocks worth more than $18 billion so far in 2025, making India one of the worst-hit markets in terms of portfolio outflows. Foreign investors offloaded bonds worth $500 million in December this year.&nbsp;Also Read: <a href="https://www.wionews.com/trending/-china-s-first-father-dreams-of-marrying-his-100-us-born-children-into-elon-musk-s-family-faimly-legacy-tesla-china-1765799327664">'China’s first father’ dreams of marrying his 100+ US-born children into Elon Musk’s family</a>&nbsp;Earlier in the day, Commerce Secretary Rajesh Agrawal said that the government is "very close" to finalising the initial framework deal with the US to lower reciprocal tariffs.&nbsp;"We are very close on closing the initial framework deal, but I don't want to put a timeline on it," Agrawal said during a briefing.&nbsp;Also Read: <a href="https://www.wionews.com/world/-stay-indoors-singapore-advises-its-nationals-amid-delhi-air-pollution-crisis-air-quality-delhi-ncr-rekha-gupta-pm-modi-india-1765794337239">Delhi air crisis: Multiple nations including UK, Canada issue advisory as AQI remains in ‘severe’ category</a>&nbsp;"We have done six rounds of talks with the US, where we have discussed both the BTA (Bilateral Trade Agreement) as well as an interim deal to lower reciprocal tariffs," he added.

The rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach.

The Indian rupee plunged to a record low on Monday (Dec 15) against the US dollar as the uncertainty looms over the India-US trade deal after several rounds of negotiation between both sides and sustained outflow of foreign capital. The rupee slipped 0.2 per cent to touch an all-time low of 90.71, surpassing the previous record of 90.49 on Friday. The Indian currency emerged as Asia's worst performer this year, having declined by nearly 6% year-to-date against the Dollar due to high US tariffs up to 50 per cent on Indian goods to its biggest export destinations and persistent foreign equity outflow. According to the forex traders, the rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach. Foreign investors turned net sellers this year as they have sold Indian stocks worth more than $18 billion so far in 2025, making India one of the worst-hit markets in terms of portfolio outflows. Foreign investors offloaded bonds worth $500 million in December this year. Also Read: 'China’s first father’ dreams of marrying his 100+ US-born children into Elon Musk’s family Earlier in the day, Commerce Secretary Rajesh Agrawal said that the government is "very close" to finalising the initial framework deal with the US to lower reciprocal tariffs. "We are very close on closing the initial framework deal, but I don't want to put a timeline on it," Agrawal said during a briefing. Also Read: Delhi air crisis: Multiple nations including UK, Canada issue advisory as AQI remains in ‘severe’ category "We have done six rounds of talks with the US, where we have discussed both the BTA (Bilateral Trade Agreement) as well as an interim deal to lower reciprocal tariffs," he added.

The rupee is trading under pressure as investors are awaiting clarity on the India-US trade deal and have adopted a wait-and-watch approach.

Indian rupee slips to all-time low of 90.72 against US dollar

The Indian rupee slid to a record low of ₹88.36 per US dollar this week amid fears of new US tariffs and global economic uncertainties. The Reserve Bank of India, the nation's central bank, reportedly intervened to cap further losses. On August 29, the rupee breached the ₹88 mark, touching ₹88.29. These are among the weakest points for the rupee in recent memory, but one group will benefit: Indian expats sending money home.<h2>India is the largest recipient of global remittances</h2>In the fiscal year 2024–25, India received a record high of $135.46 billion in inward remittances. That marks a steady growth. In 2024, remittance inflows climbed to around $129 billion, according to the World Bank, up from an estimated $125 billion in 2023. The figure was about $111 billion in 2022.Also read: <a href="https://www.wionews.com/india-news/indian-tourists-can-pay-in-indian-rupees-with-local-currency-settlement-agreement-says-maldives-finance-minister-moosa-zameer-1753778762423">Indian tourists can pay in Indian Rupees with local currency settlement agreement, says Maldives Finance Minister Moosa Zameer</a><h2>Why a weaker rupee is a boon for NRIs sending money home</h2>A weaker rupee benefits Indian expatriates by enabling them to convert every dollar, or other foreign currency, into more rupees, increasing the value of their remittances. For example, at ₹88 to a dollar, $1,000 becomes ₹88,000 instead of, say, ₹82,000 — a gain of ₹6,000.This gives greater purchasing power to the recipients of these remittances. Whether for household needs, education, investment, or savings, they gain more value.So, the drop in the rupee rate, driven by US tariff concerns and foreign exchange volatility, is in a way helping this segment of Indian society.<a href="https://www.wionews.com/videos/experts-indian-rupee-likely-to-stabilise-near-88-1756965337036/embed">https://www.wionews.com/videos/experts-indian-rupee-likely-to-stabilise-near-88-1756965337036/embed</a><h2>Who is sending money to India? Origins and destinations</h2>The United States is the key source country in terms of value of remittances, accounting for around 27.7 per cent of total flows. The UAE (19.2 per cent) and the UK (10.8 per cent) are also among the top countries. Remittances of about ₹500,000 account for 28.6 per cent of the total inflows. Smaller transactions — ₹16,500 or less — make up 40.6 per cent.States with high remittance inflows include Maharashtra (20.5 per cent), Kerala (19.7 per cent), and Tamil Nadu (10.4 per cent).Also read: <a href="https://www.wionews.com/business-economy/indo-pak-war-indian-rupee-slides-to-record-lows-falls-to-8588-against-dollar-sharpest-drop-in-over-25-years-9051844">Indo-Pak war: Indian Rupee slides to record lows; falls to 85.88 against dollar, sharpest drop in over 2.5 years</a><h2>Indian rupee fall trends and effect on remittances</h2>The rupee has been falling in recent months, dropping to ₹87.29 per US dollar in February. Historically, a weaker rupee always encouraged NRIs to remit money more frequently and in larger amounts. The 2018 rupee depreciation to 69.62 per US dollar caused a 25 per cent volume spike in remittances from the UAE.The current depreciation — around 3.6 per cent over 10 months — is showing a similar effect, particularly among skilled migrants in high-income countries.<h2>Easier now to send remittances, but challenges remain</h2>Digital infrastructure for sending money, including platforms like UPI, has improved the remittance process by reducing costs, increasing transaction speed and boosting volumes.But challenges remain. Any global slowdown, or headwinds like falling oil prices and economic uncertainties, could impact remittance inflows. There is also the risk of countries changing their visa and immigration policies, which could affect future remittance volumes.

The rupee’s fall to record lows against the dollar is boosting remittances from Non-Resident Indians (NRIs). This is good for the economy as the recipients get more purchasing power to buy goods and services, boosting demand and economic activity

The Indian rupee slid to a record low of ₹88.36 per US dollar this week amid fears of new US tariffs and global economic uncertainties. The Reserve Bank of India, the nation's central bank, reportedly intervened to cap further losses. On August 29, the rupee breached the ₹88 mark, touching ₹88.29. These are among the weakest points for the rupee in recent memory, but one group will benefit: Indian expats sending money home. India is the largest recipient of global remittances In the fiscal year 2024–25, India received a record high of $135.46 billion in inward remittances. That marks a steady growth. In 2024, remittance inflows climbed to around $129 billion, according to the World Bank, up from an estimated $125 billion in 2023. The figure was about $111 billion in 2022. Also read: Indian tourists can pay in Indian Rupees with local currency settlement agreement, says Maldives Finance Minister Moosa Zameer Why a weaker rupee is a boon for NRIs sending money home A weaker rupee benefits Indian expatriates by enabling them to convert every dollar, or other foreign currency, into more rupees, increasing the value of their remittances. For example, at ₹88 to a dollar, $1,000 becomes ₹88,000 instead of, say, ₹82,000 — a gain of ₹6,000. This gives greater purchasing power to the recipients of these remittances. Whether for household needs, education, investment, or savings, they gain more value. So, the drop in the rupee rate, driven by US tariff concerns and foreign exchange volatility, is in a way helping this segment of Indian society. https://www.wionews.com/videos/experts-indian-rupee-likely-to-stabilise-near-88-1756965337036/embed Who is sending money to India? Origins and destinations The United States is the key source country in terms of value of remittances, accounting for around 27.7 per cent of total flows. The UAE (19.2 per cent) and the UK (10.8 per cent) are also among the top countries. Remittances of about ₹500,000 account for 28.6 per cent of the total inflows. Smaller transactions — ₹16,500 or less — make up 40.6 per cent. States with high remittance inflows include Maharashtra (20.5 per cent), Kerala (19.7 per cent), and Tamil Nadu (10.4 per cent). Also read: Indo-Pak war: Indian Rupee slides to record lows; falls to 85.88 against dollar, sharpest drop in over 2.5 years Indian rupee fall trends and effect on remittances The rupee has been falling in recent months, dropping to ₹87.29 per US dollar in February. Historically, a weaker rupee always encouraged NRIs to remit money more frequently and in larger amounts. The 2018 rupee depreciation to 69.62 per US dollar caused a 25 per cent volume spike in remittances from the UAE. The current depreciation — around 3.6 per cent over 10 months — is showing a similar effect, particularly among skilled migrants in high-income countries. Easier now to send remittances, but challenges remain Digital infrastructure for sending money, including platforms like UPI, has improved the remittance process by reducing costs, increasing transaction speed and boosting volumes. But challenges remain. Any global slowdown, or headwinds like falling oil prices and economic uncertainties, could impact remittance inflows. There is also the risk of countries changing their visa and immigration policies, which could affect future remittance volumes.

The rupee’s fall to record lows against the dollar is boosting remittances from Non-Resident Indians (NRIs). This is good for the economy as the recipients get more purchasing power to buy goods and services, boosting demand and economic activity

Rupee fall is a boon for Indian expats who send money home. Here is why it matters for largest remittance-receiving nation

The <a href="https://www.wionews.com/india-news/india-is-witnessing-temporary-effects-of-global-slowdown-amit-shah-270648">Reserve Bank of India's</a> move to widen its third special open market operation (OMO) helped bonds rise on Friday but worries over a likely fiscal slippage and a surge in global crude prices capped the gains.

The Indian central bank has offered to buy a wider range of papers at the latest auction as against just the benchmark 10-year at the first two OMOs, making it more attractive for participants.

The central bank announced its first-ever special open market operation to simultaneously purchase and sell bonds in the market on December&nbsp;19 to manage bond yields which had been rising despite five consecutive rate cuts.

Yields are down 25 basis points since the announcement of the first auction after having risen as much as 37 bps since the RBI shocked markets by keeping rates on hold on December5.

"The fundamentals are turning adverse for the bond market but the RBI has managed to prevent yields from rising," said <a href="https://www.wionews.com/business-economy/india-to-launch-first-debt-exchange-traded-fund-266182">A. Prasanna</a>, an economist with <a href="https://www.wionews.com/business-economy/india-seen-making-sixth-interest-rate-cut-but-no-cure-for-economys-ills-265905">ICICI Securities</a> Primary Dealership.

"It is good news for the government and other borrowers but whether this equilibrium can sustain is doubtful."

The benchmark 10-year bond yield dropped as much as 3 bps to 6.48 per cent&nbsp;on Friday and traders said they expected yields to stay capped at 6.55 per cent levels in the near term despite broader economic concerns.

Brent crude futures jumped close to $3 to their highest since September after a <a href="https://www.wionews.com/world/rocket-attack-on-baghdad-airport-top-iran-commander-killed-271756">US&nbsp;airstrike</a> killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies.

Market participants broadly expect the government to announce a 0.4 per cent-0.6 per cent&nbsp;slippage in fiscal deficit and that could result in 500 billion rupees-600 billion rupees ($6.97 billion-$8.37 billion) worth of additional borrowing.

Yields are expected to rise on the back of increased borrowing but traders expect the RBI to continue to manage yields at least until the budget, which is likely to be announced on February&nbsp;1.

The consensus is for at least two more special OMOs before the end of the month.

"The RBI has got themselves into a situation where they cannot stop now. Yields will jump the day they stop. There is a way to manage the markets and the RBI now has to live up to the expectations that it has built," a senior debt trader at a private bank said.

The Reserve Bank of India's move to widen its third special open market operation (OMO) helped bonds rise on Friday but worries over a likely fiscal slippage and a surge in global crude prices capped the gains.

The Reserve Bank of India's move to widen its third special open market operation (OMO) helped bonds rise on Friday but worries over a likely fiscal slippage and a surge in global crude prices capped the gains. The Indian central bank has offered to buy a wider range of papers at the latest auction as against just the benchmark 10-year at the first two OMOs, making it more attractive for participants. The central bank announced its first-ever special open market operation to simultaneously purchase and sell bonds in the market on December 19 to manage bond yields which had been rising despite five consecutive rate cuts. Yields are down 25 basis points since the announcement of the first auction after having risen as much as 37 bps since the RBI shocked markets by keeping rates on hold on December5. "The fundamentals are turning adverse for the bond market but the RBI has managed to prevent yields from rising," said A. Prasanna, an economist with ICICI Securities Primary Dealership. "It is good news for the government and other borrowers but whether this equilibrium can sustain is doubtful." The benchmark 10-year bond yield dropped as much as 3 bps to 6.48 per cent on Friday and traders said they expected yields to stay capped at 6.55 per cent levels in the near term despite broader economic concerns. Brent crude futures jumped close to $3 to their highest since September after a US airstrike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies. Market participants broadly expect the government to announce a 0.4 per cent-0.6 per cent slippage in fiscal deficit and that could result in 500 billion rupees-600 billion rupees ($6.97 billion-$8.37 billion) worth of additional borrowing. Yields are expected to rise on the back of increased borrowing but traders expect the RBI to continue to manage yields at least until the budget, which is likely to be announced on February 1. The consensus is for at least two more special OMOs before the end of the month. "The RBI has got themselves into a situation where they cannot stop now. Yields will jump the day they stop. There is a way to manage the markets and the RBI now has to live up to the expectations that it has built," a senior debt trader at a private bank said.

Indian bonds gain as India's central bank, RBI, widens third special Open Market Operation

rupee-value

Rupee Value, News on Rupee Value, stories on Rupee Value, articles on Rupee Value, Rupee Value stories at Wion, Rupee Value news, Rupee Value latest news

rupee value

Indian rupee slips to all-time low of 90.72 against US dollar

Rupee fall is a boon for Indian expats who send money home. Why it matters

Indian bonds gain as India's central bank, RBI, widens third special Open Market Operation