26 November 2025 – India: The Indian rupee closed slightly weaker on Wednesday, pressured by portfolio outflows and routine importer hedging demand, though intermittent dollar sales from state-run banks limited the decline.

• The rupee closed at 89.27 per U.S. dollar, slightly down from 89.22 at the previous close.
• Positive global cues, including expectations of a December U.S. Federal Reserve rate cut, helped Indian equity benchmarks rise sharply, with the BSE Sensex and Nifty 50 gaining over 1%—their strongest one-day advance since June.

Despite equity gains, the rupee remained under pressure:

• Traders noted persistent outflows even as state banks intervened with dollar sales.
• The dollar index hovered near a one-week low, while the offshore Chinese yuan touched a 13-month high, with CNH/INR near its all-time peak of 12.60.

Other observations:

• The local currency has fallen about 4% against the U.S. dollar and over 7% versus the yuan this year amid U.S. trade tariff concerns and negative flows.
• Dollar-rupee far forward premiums nudged higher, with the 1-year implied yield at 2.21%, close to a monthly peak.
• Market participants expect the trajectory of forward premiums will hinge on the Reserve Bank of India’s policy decision on December 5. RBI Governor Sanjay Malhotra said further interest rate cuts are possible, depending on the rate-setting panel.