The recovery was aided by US dollar weakness in global markets and reported intervention by the RBI
The Indian unit opened at 90.3650 per US dollar (USD) and touched an intraday high/low of 89.8675/90.4225. It closed 22 paise stronger at 89.97 per USD, compared to the previous close of 90.19.
Factors such as continued outflow of FPIs from equity markets, demand from importers, lack of prospect of a trade deal with the US, widening trade deficit and reluctant RBI intervention continue to impact the Indian currency.
But the recovery was aided by USD weakness in global markets and RBI intervention.
Abhishek Goenka, Founder and CEO, IFA Global, said: “The recovery of the rupee from an intraday low of ₹90.42 to a closing level of almost ₹89.975 marked a meaningful recovery, aided by a softer global dollar and profit taking on USDINR long positions ahead of tomorrow’s MPC outcome.
“There were also indications of the RBI’s presence in the market, with the central bank likely intervening to dampen speculative pressures as the pair tested key psychological levels, restoring stability during the session.”
Madhavi Arora, chief economist at Emkay Global Financial Services, said: “The rupee’s weakening trend will continue, with policy preference also seemingly shifting towards a weaker currency to offset the hit rates. USDINR could trade in the 88-91 range till end of FY26, depending on the outcome of the US-India trade/tariff standoff.”
Published on December 4, 2025
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