Indian rupee bounces back ahead of key RBI policy update

Business Dec 05, 2025

The rupee made a small comeback on Friday, rising to about 89.73 per dollar after recently hitting a record low. This boost came as banks stepped in to sell dollars and steady the currency.
Now, everyone's watching for the Reserve Bank of India's policy announcement on Friday morning, with many expecting a rate cut. However, strong economic growth has actually reduced market bets on easing.

Markets play it safe while waiting for RBI

With the big RBI decision coming up, traders are holding back on risky bets.
Exporters have been told to sell dollars now, while importers are advised to buy during dips.
Meanwhile, bond yields dipped slightly and stock markets stayed flat—showing that most investors are playing it cool until they hear what the central bank has planned.