Mumbai, December 3 (Udaipur Kiran): As the Indian rupee slipped to a fresh record low and crossed the psychological 90-mark against the US dollar, the Reserve Bank of India (RBI) was seen largely absent from the spot forex market, with only limited intervention at select levels.
According to market sources, the central bank may have intervened near the 90.16–90.17 level against the US dollar on December 3 and again around 90.27–90.29 to curb sharp depreciation. However, overall intervention remained minimal despite the sharp fall in the currency.
Currency experts believe the RBI’s restrained approach could be indicating a possible surprise element in the upcoming monetary policy announcement. Sources said the limited intervention may be setting the stage for an important commentary or announcement in the December policy.
A treasury head at a bank said the RBI stepped in 2–3 times when the rupee crossed the 90-mark. “The interventions were seen near 90.16–90.17,” he said.
Dilip Parmar, foreign exchange analyst at HDFC Securities, said there could be some clarification or announcement in the monetary policy regarding the recent weakness of the rupee.
Kunal Sodhani, Head of Treasury at Shinhan Bank India, said, “RBI intervention has not been there, thus gates opened from 88.81 levels till the current 90.29 levels. They are allowing demand and supply to find a new range.”
Gaura Sengupta, economist at IDFC First Bank, said the reduced forex intervention would also limit the drain on domestic liquidity and help avoid tight liquidity conditions.
The rupee opened at an all-time low and crossed the 90-mark on persistent equity outflows and uncertainty surrounding the India–US trade deal. At 2:15 pm, the domestic currency was trading at 90.1450 against the US dollar, compared to 89.9625 at the open and 89.8750 at the previous close.
Experts said the RBI is expected to acknowledge the rupee’s depreciation in its monetary policy but may avoid signalling any specific currency levels. The Monetary Policy Committee (MPC) began its meeting later today, with the rate decision scheduled for December 5.
As per Bloomberg data, the rupee depreciated 5.08 per cent between December 31, 2024, and December 3, 2025. It has emerged as one of the worst-performing Asian currencies during this period, after the Indonesian rupiah, which declined 3.17 per cent. The Philippine peso weakened 1.54 per cent, while the Hong Kong dollar fell 0.18 per cent.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
Related
