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Below the Quote on Rupee 16th December 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd

"Further sharp weakness in rupee was not expected today since the November trade data has come better-than-expected. Covering of short positions may be a factor in today’s decline. Sustained FII selling is acting like a vicious cycle pulling the rupee down. 

Normally when rupee declines, the RBI intervenes by selling dollars to stem the decline of the rupee. But recently the RBI’s policy has been to let the currency decline. Low inflation in India ( 0.71% in November ) is the reason for this non-intervention by the central bank. Rupee depreciation is not hurting the economy. 

India’s November trade deficit declining to $24.53 billion from 41.68 billion in October is positive for the rupee."

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