Back to today’s briefing

Story perspectives

Rupee Weakens for Third Day Amid Dollar Demand

12/30/2025

27 5 Full Breakdown

Summary

Story summary

The Indian rupee closed at 89.9750 per United States dollar on December 29, 2025.
It was the third straight session of weakness as corporate dollar demand and thin volumes weighed.
The United States dollar index rose on stronger pending home sales, despite 2026 rate-cut worries.
The euro fell amid geopolitical tensions and stalled Ukraine peace talks, while the Canadian dollar remained stable due to rate differentials.

History

Historical Context

In 1991, India faced a severe balance of payments crisis, prompting the government to devalue the rupee by 18% and initiate economic liberalization under Prime Minister P.V. Narasimha Rao and Finance Minister Manmohan Singh. This shift aimed to stabilize the economy and attract foreign investment, yet India still grapples with a current account deficit, reflecting ongoing vulnerabilities in its economic landscape.

1 of 2

Story summary

The Indian rupee closed at 89.9750 per United States dollar on December 29, 2025.
It was the third straight session of weakness as corporate dollar demand and thin volumes weighed.
The United States dollar index rose on stronger pending home sales, despite 2026 rate-cut worries.
The euro fell amid geopolitical tensions and stalled Ukraine peace talks, while the Canadian dollar remained stable due to rate differentials.

1 / 2