The Indian currency closed around 52 paise lower compared to the previous close of 89.9650 per US dollar. On Thursday, the INR surpassed the previous week’s record low of 90.43 per dollar
The Indian currency (INR) closed around 52 paise lower against a previous close of 89.9650 per US dollar (USD). On Thursday, the INR surpassed the previous week’s record low of 90.43 per dollar.
Thursday’s closing low was also the lowest intraday level. The intraday high was 89.96 per dollar.
Vikram Kasat, Head Advisory at PL Capital, said the Indian rupee weakened further to close near a record low as a strong dollar and continued foreign outflows kept pressure on the domestic currency.
With the Fed’s rate cut absorbed and domestic signals limited, markets will move in the near term based on global sentiment, currency trends and institutional flows, he added.
Emkay Global Financial Services said in a report: “Currency-related stress should continue to weigh on economic stability, leaving elevated vulnerability through the first calendar year of 2026.” A trade deal could ease pressure on the rupee.
Impact on India Inc
Meanwhile, Fitch Ratings noted that most Indian companies in its rated portfolio either enjoy some degree of natural hedge against movements in the value of the Indian rupee or generally fully or substantially hedge their foreign currency liabilities.
Nevertheless, the rating agency expects that in sectors that are significantly vulnerable to the rupee’s depreciation, a hypothetical inability of issuers to substantially mitigate currency risks through hedging could put downward pressure on ratings.
Fitch noted that its portfolio of issuers in the renewable energy, power utilities and toll roads sectors generally generate revenue in local currencies and lack natural hedges, making them more vulnerable to the rupee’s depreciation.
Some companies in these sectors have hedged all or most of their foreign currency debt coupons and principal liabilities, either through hedging instruments or by keeping their foreign currency borrowings at less than 20 percent of consolidated debt, the agency said. The depreciation of the rupee is unlikely to impact the ratings of these companies.
“For example, other issuers in these sectors are only partially hedged, with some or all principal repayments exposed above certain levels of exchange rate fluctuations, although coupon payments are generally fully hedged by issuers.
“Even for these issuers, we do not expect significant rating impact if the rupee is marginally weaker than under our rating scenario, which currently sees the currency seeing INR87:USD1 by end-2026, compared to around INR90:USD1 on December 9,” Fitch said.
This is largely due to structural protection against currency risks, such as guarantees from parent companies, interest coverage through intra-company loans, earmarked liquidity for currency outflows and cash trap mechanisms.
Published on December 11, 2025
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