Indian rupee depreciated against the US dollar on Monday weighed down by uncertainty over an India-US trade deal and persistent foreign fund outflows. Foreign portfolio investors remained net sellers, pulling out Rs 12,941 crore in the week ended December 12. Traders were concerned as the government data showed that retail inflation inched up to 0.71 per cent in November, from a record low of 0.25 per cent in the previous month, led by rising prices of food items. Investors overlooked the report that annual rate of inflation based on All India Wholesale Price Index (WPI) number is (-) 0.32% (provisional) for the month of November, 2025 (over November, 2024). Negative rate of inflation in November, 2025 is primarily due to decrease in prices of food articles, mineral oils, crude petroleum & natural gas, manufacture of basic metals and electricity etc. On the global front, Japanese yen strengthened against other major currencies in the European session on Monday, as traders speculated that the Bank of Japan or the BoJ is likely to raise its interest rate in the policy meeting held this week.

Finally, the rupee ended at 90.78 (Provisional), depreciated by 28 paise from its previous close of 90.50 on Friday. The currency touched a high and low of 90.80 and 90.51 respectively.