The Indus Zone Tech Desk | | Updated: November 24, 2025 | Rupee Recovers 46 Paise to Close at 89.20 Against U.S. Dollar
After hitting a record low last week, the Indian rupee made a strong comeback on Monday, rising 46 paise to close at Rs 89.20 against the U.S. dollar. The recovery was largely driven by dollar selling by banks and importers, along with easing global crude oil prices.
Rupee Rebounds After Steep Fall
At the interbank foreign exchange market, the rupee opened on a positive note at ₹89.46. Throughout the trading session, it moved within a range of Rs 89.05 to Rs 89.50, ultimately ending the day with solid gains compared to Friday’s historic low of Rs 89.66.
The rupee had crashed 98 paise on Friday, marking its sharpest single-day fall in more than three years. The previous major drop—99 paise—was recorded on February 24, 2022.
The sudden fall was triggered by heavy demand for the U.S. dollar, broad weakness in domestic and global equities, and uncertainty in global trade flows.
RBI Intervention Helps Stabilise Market
According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, the Reserve Bank of India played a key role in calming the forex market.
“The RBI opened the dollar lower at around 89.15 through selling in the NDF (non-deliverable forward) market, keeping the currency within the 89–89.30 band,” Bhansali said.
The market remained cautious through the day as traders anticipated further RBI action to curb volatility.
Global Factors Supporting Rupee Movement
Several external factors also contributed to the rupee’s recovery:
The dollar index slipped marginally by 0.02% to 100.15, indicating slight weakness in the U.S. currency.
Brent crude oil fell 0.78% to $62.07 per barrel, offering relief to India, which relies heavily on crude imports.
Lower crude prices ease pressure on India’s import bill, often supporting the rupee.
Domestic Markets Under Pressure
Despite the rupee’s rebound, Indian equity markets closed lower:
Sensex dropped 331.21 points, ending at 84,900.71
Nifty shed 108.65 points, closing at 25,959.50
Foreign institutional investors (FIIs) remained net sellers, pulling out ₹1,766.05 crore from Indian equities on Friday.
Forex Reserves See Strong Growth
India’s foreign exchange reserves recorded a significant increase, rising $5.54 billion to $692.57 billion for the week ended November 14. The surge was mainly due to a jump in the value of the country’s gold holdings, according to RBI data.
