The Indian rupee experienced its second consecutive monthly decline in December, briefly falling below 91 per dollar for the first time. Intervention by the Reserve Bank of India (RBI) curbed further losses, with the rupee closing December down 0.5% and the year down 4.7%. Factors contributing to the decline included foreign investor outflows, increased importer hedging, and demand from sectors like defense and oil. The RBI's intervention, similar to previous months, aimed to stabilize the currency against speculative pressures and hedging demand.