Rupee Slips 10 Paise to 90.15 Against U.S. Dollar Amid Pre-FED Caution

The Indian rupee depreciated 10 paise to 90.15 against the U.S. dollar in early trade on Tuesday (December 9, 2025) as dollar demand from corporates, importers and FPIs weighed on sentiment.

Forex traders said the market is in a wait-and-watch mode ahead of key signals from the U.S. Federal Reserve, with participants avoiding large positions until clarity emerges from Fed Chair Jerome Powell’s policy stance later this week.

The rupee opened at 90.15, compared to Monday’s (December 8) close of 90.05.

Awaiting U.S. FED Outlook

"Any shift in tone could quickly change the direction for global currencies," said Amit Pabari, MD, CR Forex Advisors.

He added that with the dollar softening on expectations of a Fed rate cut, combined with the RBI’s liquidity management and hopes of progress on trade discussions, the rupee is likely to consolidate between 89.20 and 90.30.

Dollar Index and Crude Oil

The dollar index was down 0.04% at 99.04.
Brent crude slipped 0.19% to $62.37 per barrel in futures trade.

Pressure From FPIs and Global Cues

“A mix of softer local equities, weak Asian currencies, pre-FED caution and higher U.S. yields are dragging the rupee,” said Anil Kumar Bhansali, Head of Treasury & Executive Director, Finrex Treasury Advisors LLP.

He noted that FPI equity outflows, coupled with uncertainty ahead of U.S.–India trade talks starting Wednesday, are keeping the dollar well supported, while RBI intervention is limiting excessive rupee volatility.

India–US Trade Talks

India and the United States begin three-day negotiations on the first phase of their proposed bilateral trade agreement in New Delhi from December 10.

Equities Under Pressure

In domestic markets:

• Sensex fell 381.91 points to 84,720.78

• Nifty dropped 139.55 points to 25,821.00

Foreign Institutional Investors (FIIs) sold equities worth ₹655.59 crore on Monday, as per exchange data.