Currency

The rupee's depreciation is often seen as an opportunity - but this narrative overlooks its impact on borrowers of foreign-currency debt

If these are the three challenges, there are also three key developments that everyone will watch out for

A dwindling ​interest rate difference between the US and other economies has cast a shadow over the currency market, resulting in most currencies gaining sharply against the dollar in 2025

The currency repeatedly fell to record lows during the year, slipping past the 91 level at one point, highlighting the sustained depreciation pressure

The Indian rupee has hit a fresh record low, crossing 91 against the US dollar for the first time. With the currency weakening steadily despite gains in other Asian currencies

A key reason is the Reserve Bank of India's $64 billion short-dollar position - a pledge to supply large amounts of dollars in the future through derivatives contracts with lenders

Nearly 10 years after high-denomination notes were banned, Nepal plans to allow Indian notes above ₹100, easing travel for workers, students, pilgrims and tourists, and smoothing trade

The seeds of the Fragile-Five debacle were sown by the Reserve Bank of India buckling under political pressure and cutting rates in 2012 amid soaring fiscal deficits and untamed inflation

By signaling tolerance for a weaker rupee, RBI is indicating that it will intervene mostly to curb sharp volatility or on any signs of a speculative build-up but not defend any specific level on rupee

On Tuesday, the rupee had already touched 89.9475 before ending the day at 89.87 - a decline of nearly 0.4 per cent

Indian Rupee touched a new record low of 89.97 against the US dollar on December 1, 2025, amid delays in the India-US trade agreement, and limited RBI intervention

The rupee depreciated by 34 paise to an all-time low of 89.79 (provisional) against the US dollar in intraday trade on Monday, tracking a negative trend in domestic equities and persistent foreign fund outflows. Forex traders said a strong greenback and a rise in international crude oil prices also weighed down the Indian currency. Moreover, significant dollar demand by importers exerted persistent downward pressure on the local currency. At the interbank foreign exchange market, the rupee opened at 89.45, then lost its ground and fell to a record low of 89.79 (provisional) against the US dollar in intraday trade, registering a fall of 34 paise over its previous close. On Friday, the rupee dropped nine paise to settle at 89.45 against the US dollar. On November 21, the rupee plunged 98 paise to close at its lifetime low of 89.66 against the US dollar. "The rupee has been under pressure as there has been heavy buying by FPIs taking out money, outflows happening as stakes were sold

If movements in the exchange rate can help equilibrate "external balances", monetary and fiscal policy is freed up to focus on trying to achieve "internal balance"

A Chinese company has bagged a contract to design and print 430 million pieces of Nepal's Rs 1,000 denomination banknotes, officials said on Saturday. Nepal Rastra Bank (NRB) issued a letter of intent to the China Banknote Printing and Minting Corporation on Friday for the design, printing, supply and delivery of the notes, the bank officials said. The total project cost has been fixed at USD 16.985 million, according to the Currency Management Department of the bank. The Chinese company was selected on the basis of the lowest evaluated bid. The firm has previously printed Nepalese banknotes of Rs 5, Rs 10, Rs 100, and Rs 500 denominations, the officials said.

The upbeat view comes despite the currency on Monday dipping near its lifetime low of 88.80 to the US dollar

Through this collaboration, Blinkit will provide doorstep delivery of Thomas Cook's Borderless Travel Card (for leisure travellers) and Study Buddy (for students) in Delhi, Bengaluru, and Mumbai

India on Thursday announced an over USD 655 million special economic package for Mauritius and signed seven pacts to further expand bilateral ties in several critical sectors with Prime Minister Narendra Modi describing the two countries as not just partners but a family. Following talks with his Mauritian counterpart Navinchandra Ramgoolam, Modi said a free, open, stable and prosperous Indian Ocean is a shared priority for both sides and India remains fully committed to strengthening the security of Mauritius's exclusive economic zone. Modi also said that both sides will work towards enabling bilateral trade in local currencies following successful launch of UPI and RuPay cards in Mauritius. Under the special economic package, India will assist Mauritius implement at least 10 projects that include strengthening key infrastructure like port, airport, and roads and to set up new schools and hospitals. "This package is not an assistance. It is an investment in our shared future," Mod

The rupee slumped 36 paise and closed for the day at an all-time low of 88.47 (provisional) against the US dollar, as ongoing tariff issue between India and the US weighed heavily on the domestic currency's vulnerability. Forex traders said a recovery in the US dollar ahead of the inflation data and foreign fund outflows further dented investors' sentiments. Crude oil prices also gained over the past few sessions, putting further pressure on the rupee. Traders noted that the rupee, which showed signs of minor recovery after US President Donald Trump gave positive signals about the India-US trade treaty, remains fragile due to dollar demand and global factors. At the interbank foreign exchange, the domestic unit opened at 88.11 and fell to an all-time low of 88.47 against the US dollar in intraday trade. The domestic unit settled for the day at a record low of 88.47 (provisional), registering a sharp decline of 36 paise over its previous close. On Wednesday, the rupee recovered ...

As Trump tariffs hit India's trade, US Treasury Secretary Scott Bessent shot down talk of the rupee gaining 'reserve' status, citing its weakness versus the dollar

The Governor further said that while crude oil is a key driver of inflation, stopping Russian oil purchases may not significantly impact inflation at this stage