Rupee slips after 3-day rally

Business Dec 23, 2025

The Indian rupee dropped 0.4% to 89.65 per US dollar on Monday, snapping its recent winning streak as demand for dollars picked up among local companies.

Why does this matter?

A weaker rupee means higher prices for imported goods like oil, which can push up inflation and make everyday expenses tougher for everyone.
Since January, the rupee has lost nearly 6%, reflecting global market jitters from US politics and trade uncertainties.

What's behind the fall?

The dip was driven by local firms buying more dollars and pressure from forward contracts—moves that outweighed the RBI's efforts to steady things last week.
Rising oil prices and ongoing uncertainty in US politics and trade are also adding fuel to the fire, according to analysts at ICICI Bank and DBS Bank.