The Indian rupee ended November near its all-time low, closing at ₹89.4575 per U.S. dollar on Friday, marking a 0.6% decline for the month. The currency remained just shy of its record low of ₹89.49 hit on November 21, as the Reserve Bank of India (RBI) intervened to counter pressure from capital outflows and speculative bets against the rupee.

Traders cited broad-based demand for the dollar as the primary driver of the rupee’s weakness. However, RBI intervention helped pin the currency near its all-time low for most of the session.

Earlier this week, the International Monetary Fund (IMF) reclassified India’s foreign exchange framework as a “crawl-like arrangement”, two years after labeling it “stabilized”, highlighting the central bank’s continued management of currency volatility.

Several domestic factors contributed to pressure on the rupee:

• A record-high merchandise trade deficit in October, fueled by surging gold imports.
• Declining exports to the U.S., following tariffs of up to 50% imposed on Indian goods.
• Concerns about the central bank’s ability to intervene, as it remains significantly short in the USD/INR non-deliverable forwards market.

Despite the challenges, India is aiming to secure a trade deal with the U.S. before year-end, with most issues reportedly resolved, according to the country’s trade secretary.

Globally, the dollar index was up 0.2% at 99.75, tracking for a weekly fall amid investor bets that the U.S. Federal Reserve may cut interest rates next month. Asian currencies traded mixed, with the offshore Chinese yuan near a one-year high, while the Korean won fell 0.5%.

Market participants now turn to India’s GDP growth data for Q2 (July–September), which is expected to provide fresh insights into domestic economic momentum and influence currency movement.