NEW DELHI, Dec 3: The Indian rupee sank to an all-time low on Wednesday as it slipped past the crucial ₹90 per US dollar mark — a clear sign of growing pressure on the domestic currency.
According to forex-market data, the rupee weakened to as much as ₹90.13 per dollar in early trade before settling near the low.This steep slide marks a fresh milestone in the currency’s downward spiral that has gathered pace in recent weeks.
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Capital outflows & weak foreign investment: Foreign institutional investors have been steadily withdrawing funds from Indian equity markets, putting pressure on the rupee.
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Import demand & crude oil prices: High demand for dollars from importers, especially for oil and other imports denominated in dollars, is increasing the demand for foreign exchange.
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Uncertainty surrounding trade and global economic conditions: Delays in key trade agreements and global macroeconomic uncertainty have dented investor confidence.
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Limited intervention from the central bank so far: Although the Reserve Bank of India (RBI) has intervened intermittently, market participants say the actions have not been sufficient to counter the ongoing slide.
The rupee’s fall is likely to increase costs for importers, pushing up prices of crude-oil imports, electronics, and other dollar-denominated goods — which could feed into overall inflation. Analysts warn this may also weigh on corporate profits, especially for firms reliant on imports or expensive foreign-currency borrowings.
For ordinary citizens, the weakening rupee may translate into higher costs for foreign travel, education abroad, and even overseas remittances. Roughly a 5 % depreciation in 2025 so far makes these expenses significantly more expensive in rupee terms.
With global headwinds — including volatile oil prices, shifting investor sentiment, and global interest-rate trends — analysts expect the rupee to remain vulnerable. Unless foreign capital flows pick up or the RBI steps in more aggressively, the rupee could test new lows in the coming weeks.
Financial experts recommend investors and import-dependent businesses hedge their dollar exposure promptly. Meanwhile, ordinary citizens planning overseas trips or education may want to reconsider the timing or factor in currency fluctuations when budgeting.
