Uday Kotak, founder of Kotak Mahindra Bank, warned Indian businesses on December 3, 2025, to prepare for the rupee's record low beyond ₹90 against the US dollar and step out of their comfort zones. He attributed the depreciation primarily to foreign portfolio investors (FPIs) and private equity under FDI selling Indian equities aggressively. Local investors continue buying, but Kotak noted that foreigners appear smarter for now, with the Nifty's one-year dollar return at zero.​

The rupee opened at ₹89.96, slipped past ₹90.20 intra-day, and hit an all-time low amid persistent equity outflows and uncertainty over the India-US trade deal. It had closed the prior session at ₹89.87, marking nearly 5% depreciation in 2025 due to global factors, trade deficit widening, and slowing exports. Analysts link the slide to stalled trade negotiations and a strong dollar index below 100.​

Kotak emphasized this as a long game, posting on X: foreign selling drives the proximate pressure, but Indian businesses must adapt strategically. Experts like Anil Bhansali from Finrex Treasury Advisors predict potential further fall to ₹91 if RBI support eases at ₹90. Jateen Trivedi of LKP Securities highlighted muted RBI intervention accelerating the decline amid high import costs from metals and bullion.​

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The RBI's monetary policy committee meets December 3-5, with the rate decision on Friday, complicating matters as a cut could spur more selling while a weak rupee fuels inflation. VK Vijayakumar of Geojit Investments tied the volatility to trade deal delays despite strong corporate earnings. Though the US dollar index dipped slightly and Brent crude fell to $62.43, rupee downside risks persist without clear RBI action.​

Despite concerns, Chief Economic Adviser V Anantha Nageswaran views the slide as temporary, expecting recovery next year given India's fundamentals. Kotak's call underscores the need for businesses to enhance competitiveness amid currency pressures from geopolitical and market dynamics. Exporters may gain marginally, but importers face higher costs.​

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