Archive · 8 Dec 2025
Indian Rupee Hits 90 per Dollar
The Indian rupee has reached a record low of 90 rupees per dollar.
This means that the rupee has lost value compared to the US dollar.
There are several reasons for this, including delays in a trade deal with the US and foreign investors taking their money out of India.
The Reserve Bank of India (RBI) has cut interest rates to help the economy, but the rupee's depreciation can make imported goods more expensive for people in India.
On the positive side, a weaker rupee can make Indian exports cheaper and more attractive to other countries.
However, the immediate impact on exports is limited due to global economic uncertainties and trade tariffs.
The RBI is carefully managing the situation to stabilize the rupee and support the economy.
The Indian rupee has depreciated to a record low of 90 per dollar, raising concerns about economic stability.
Delayed trade deal with the US and outflow of foreign investments are key reasons for the rupee's slide.
The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to support the economy.
A weaker rupee can boost exports but makes imported goods more expensive for citizens.
The RBI's recent liquidity measures and open market purchases aim to stabilize the financial markets.
- Who
- Indian government, Reserve Bank of India (RBI), economic analysts, and citizens
- What
- Depreciation of the Indian rupee against the US dollar
- When
- Recent, with the rupee breaching the 90-per-dollar mark in December 2025
- Where
- India
- Why
- Delayed trade deal with the US, outflow of foreign investments, and reduced foreign exchange reserves
Pros of Rupee Depreciation
Cons of Rupee Depreciation
Export Benefits
Pros of Rupee Depreciation
A weaker rupee makes Indian exports cheaper and more competitive internationally, potentially boosting economic growth.
Cons of Rupee Depreciation
The immediate impact of a weaker rupee on exports may be limited due to global economic uncertainties and trade tariffs.
Import Costs
Pros of Rupee Depreciation
The depreciation can encourage domestic production and reduce reliance on imports over time.
Cons of Rupee Depreciation
Higher import costs for essential goods and commodities can increase inflation and burden consumers.
Investor Sentiment
Pros of Rupee Depreciation
A weaker rupee can attract foreign investors seeking higher returns on investments denominated in rupees.
Cons of Rupee Depreciation
The current depreciation has led to significant foreign portfolio investment outflows, indicating investor caution.
- Current Exchange Rate
- 90 rupees per dollar
- Macroeconomic Indicators
- High growth rate and low inflation rate
- Foreign Portfolio Investments
- Significant net outflow of ₹1.55 lakh crore in 2025
- Foreign Direct Investments
- Unprecedented decline
- Foreign Exchange Reserves
- Reduction due to investment outflows
- RBI's Stance
- Intervenes only during high volatility
- Repo-Rate Cut
- 25 basis points on December 5, 2025
- FPI Withdrawals in December 2025
- ₹11,820 crore in the first week
- Current Account Deficit (CAD)
- Forecast to deteriorate in Q3FY26
- Trade Balance
- Worsened to US$ -21.8 bn in October 2025
- Exports to the US
- Dropped by -9% Year-over-Year (YoY) in October 2025
Sources
On a slippery slope: Editorial on the rupee sliding against the dollar amid India’s economic strength
The Statesman
FPIs withdraw ₹11,820 crore in first week of December; outflow reaches ₹1.55 lakh crore in 2025
India's forex reserves drop $1.88 bn to $686.227 bn with FCA down, gold reserves up
US Fed decision, FIIs trading activity to drive stock markets this week: Analysts
Stock markets this week: From Fed Policy to FII flows, key factors to watch
RBI’s December move opens more constructive bond market landscape
US Under Secretary Hooker in India to boost ties amid advancing trade talks
Rupee at record low: Don’t ignore international investing for hedging currency risk
Navigating Volatility: India's market jitters on Trade & Geopolitics
RBI’s monetary policy need not be hostage to rupee; sliding core inflation telltale sign of excess capacity: JP Morgan’s Jahangir Aziz
India's forex reserves drop by $1.8 billion, gold reserves edge higher, RBI data shows
DIIs outpace FIIs amidst depreciating Indian rupee
FPIs offload Rs 11,820 cr in Dec
Why the rupee has a capital account problem
Prices Set To Rise Further As Rupee Touches The 90 Mark
Will The US Fed’s Decision Trigger A New Low For Rupee This Week?
Rupee To Open Steady But Outlook Fragile After Fall Past 90
Market to see flat opening amid weak global cues
Rupee breaches 90-level mark in morning trade: Opens at 90.06 against the dollar
Gold rates drop, but dollar's weakness, US Fed rate cut hopes cap losses; experts unveil strategy for bullion trade
