₹ slips past 91/$ amid FPI outflows, risk off trade

“The RBI continuously monitors developments in the foreign exchange market and intervenes only to address episodes of excessive volatility,” Chaudhary said.

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Foreign portfolio investors (FPIs) have withdrawn more than $2 billion in the first two weeks of December alone, putting the month among the largest episodes of net outflows seen this year.

Market participants said that globally, a rise in US Treasury yields, coupled with growing expectations of a policy rate hike by Bank of Japan, has led to an unwinding of yen-funded carry trades. This has triggered a broad-based risk-off shift across equities, credit markets, crypto assets, and select commodities, intensifying pressure on emerging market currencies, including the rupee.

“The rupee has slipped to a fresh low, crossing the 91 mark, making it one of the weakest major currencies globally this year and the weakest in Asia in 2025 so far. The pressure on the currency is being driven by three key factors: sentiment, capital flows, and the global macro backdrop,” said Anindya Banerjee, head, currency and commodity research, Kotak Securities.