NEW DELHI, Dec 3: The Indian rupee has plunged to a historic low, breaching the 90-mark against the US dollar for the first time, amid mounting economic pressures and global uncertainties. The currency touched an intraday low of 90.16 before settling near the 90 level, making it Asia’s worst-performing currency in 2025.
According to market experts, the sharp depreciation has been driven by persistent foreign portfolio investment (FPI) outflows, uncertainty surrounding the India–US trade deal, and a globally stronger dollar. The Reserve Bank of India (RBI) was reported to have intervened in the forex market to moderate the fall, but its measures have had limited impact so far.
Analysts noted that the rupee’s weakness reflects deeper economic challenges, including a widening trade deficit, reduced capital inflows, and rising import costs. The depreciation has immediate implications for fuel prices, tuition fees abroad, and the cost of imported goods, adding pressure on households and businesses alike.
While some experts argue that a weaker rupee could boost export competitiveness, others warn that the pace of decline signals underlying stress in the economy. The fall has already triggered debates on whether this depreciation is a calibrated adjustment or a sign of structural weakness.
In the current year, the rupee has depreciated by over 4.4 percent, underscoring the volatility in currency markets. Economists emphasise that the trajectory of the rupee will depend on RBI’s policy stance, foreign capital flows, and progress in trade negotiations with the United States.
The breach of the 90-mark is seen as a psychological threshold, raising concerns about inflationary pressures and the resilience of India’s financial system. Authorities have assured that measures are being taken to stabilise the currency and protect the economy from further shocks.
