Wed Dec 24 10:47:44 UTC 2025: Here’s a summary of the text followed by a news article version:

Summary:

On December 24, 2025, the Indian rupee weakened against the US dollar, closing at 89.79, a 16 paise decline. This was driven by foreign investor capital withdrawals, increased dollar demand from bullion importers, and rising crude oil prices. While the Reserve Bank of India (RBI) announced measures like USD/INR swaps and Open Market Operations (OMO) to inject liquidity, these failed to significantly boost market sentiment. Domestic stock markets also declined, with the Sensex and Nifty both dropping. The RBI is attempting to stabilize the market by purchasing government securities and conducting dollar-rupee swap auctions.

News Article:

Rupee Slides Amid Capital Outflows and Strong Dollar Demand

Mumbai, December 24, 2025 – The Indian rupee experienced a decline against the US dollar today, closing at 89.79, a loss of 16 paise. Persistent capital withdrawals from foreign investors, coupled with heightened demand for the greenback from bullion importers, weighed heavily on the currency.

Despite measures announced by the Reserve Bank of India (RBI) including USD/INR swaps and Open Market Operations (OMO) aimed at injecting liquidity into the banking system, market sentiment remained subdued. Analysts say the measures were insufficient to counter the strong dollar demand and rising crude oil prices. Brent crude was trading at $62.52 per barrel.

“The decline in the USD/INR pair was driven by a shift toward risk aversion, fueled by persistent capital withdrawals from foreign investors leading up to the holiday break, alongside heightened greenback demand from bullion importers,” said Dilip Parmar, Senior Research Analyst at HDFC Securities.

The RBI recently announced plans to purchase government securities worth ₹2 lakh crore and conduct a $10 billion buy/sell dollar-rupee swap auction.

Domestic equity markets also reflected the negative sentiment, with the Sensex closing down 116.14 points at 85,408.70 and the Nifty dropping 35.05 points to 26,142.10. Foreign Institutional Investors (FIIs) offloaded equities worth ₹1,794.80 crore on Tuesday. The market is watching closely to see if the RBI interventions will stabilize the rupee in the coming days.

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