Rupee slips to 89.90 as foreign investors pull out

Business Dec 31, 2025

The Indian rupee dropped to 89.90 against the US dollar on Wednesday, losing 15 paise in a single day.
This dip comes as foreign investors continue to pull money out of Indian stocks, even as the local share market opened higher.

Why is this happening?

In 2025, foreign portfolio investors took out $16.5 billion from Indian equities, putting steady pressure on the rupee.
Anil Kumar Bhansali from Finrex Treasury Advisors pointed out that with inflation staying low, there's not much reason for the rupee to bounce back right now.
Meanwhile, global factors like a slightly stronger dollar and small changes in oil prices played a role too—but interestingly, India's stock markets stayed positive even after big sell-offs by foreign investors.