Rupee Hits Record Low, Crosses 90 Against US Dollar — What This Means for India’s Economy and Your Wallet

New Delhi | December 3, 2025 The Indian rupee tumbled to an all-time low on Wednesday, crossing the symbolic 90-mark against the US dollar in early trade, rattling markets and households alike. The currency touched 90 per dollar after weeks of steady decline, driven by a combination of global and domestic factors. Analysts say the slide reflects both structural pressures and temporary volatility, raising concerns about rising costs for businesses, consumers, and the broader economy. The rupee’s weakness has been building gradually. Global investors have been pulling money out of Indian markets, seeking safer assets amid uncertain international conditions. Meanwhile, the US dollar strengthened against most major currencies, further putting pressure on emerging market currencies like the rupee. Traders noted that while the fall itself was anticipated, the speed and scale of the decline caught many market participants off guard. The Reserve Bank of India (RBI) reportedly stepped in to calm volatility, but the rupee struggled to recover meaningfully during the trading day. Foreign portfolio flows into India have remained weak for months, leaving the currency exposed. Pending trade discussions between India and the US have also added uncertainty, while global risk sentiment continues to favour the dollar over emerging market assets. These factors combined have left the rupee without strong support in the market. The impact of a weaker rupee is immediate and visible across the economy. Import bills for essential goods such as crude oil, electronics, and industrial machinery rise sharply, increasing costs for companies and households. Firms with foreign currency loans face higher repayment burdens, squeezing profit margins and potentially affecting investment plans. Ordinary consumers, students, and travellers are also feeling the pinch, as imported goods and overseas expenses become more expensive almost instantly. While exporters may gain some short-term relief from a weaker rupee, the overall economic pressure increases. Analysts warn that unless foreign investment flows stabilize or global conditions improve, the rupee is likely to remain volatile. Investors and businesses are closely monitoring whether the RBI will intervene more aggressively in the coming days to defend the 90 level. Crossing the 90-mark is not just a symbolic event. It highlights deeper challenges for India’s currency, including external vulnerabilities, trade imbalances, and sensitivity to global market movements. For now, the situation underscores the need for careful policy management, cautious spending, and close attention to global developments. Market participants, businesses, and households alike are watching nervously to see if the rupee can stabilize or if further depreciation is on the horizon. The rupee’s record fall serves as a reminder that currency fluctuations affect everyone—from corporate boardrooms to kitchen tables—and that managing financial exposure has become increasingly crucial in today’s interconnected global economy. Rupee Hits Record Low, Crosses 90 Against US Dollar — What This Means for India’s Economy and Your Wallet The Indian rupee hit a historic low on Wednesday, slipping past 90 against the US dollar in early trade, marking a major moment for the economy and households alike. The fall comes after weeks of steady pressure, as global investors pulled money out of Indian markets and the dollar strengthened against most major currencies. While traders expected a decline, the speed of the slide caught many by surprise. The Reserve Bank of India reportedly stepped in to calm volatility, but the currency struggled to recover. Analysts say the rupee’s weakness is linked to weak foreign investment flows, pending trade discussions with the US, and global market uncertainty. Together, these factors have left the rupee exposed without strong support in the market. A weaker rupee has immediate consequences for daily life and business. Import bills for essential goods like crude oil, electronics, and industrial machinery rise, increasing costs for companies and consumers. Businesses with foreign loans face higher repayment costs, while students and travellers feel the impact quickly through more expensive products and services. Exporters may benefit slightly, but overall, the economy faces added pressure. Market watchers are now focused on whether the RBI will defend the 90 mark more aggressively in the coming days. Analysts warn that unless foreign investment flows stabilize or global conditions improve, volatility is likely to continue. Crossing the 90-mark is not just symbolic—it signals deeper vulnerabilities in India’s currency and highlights the challenges of managing a market sensitive to global trends. For households, businesses, and investors, this slide is a reminder that currency fluctuations affect everyone. Rising costs, higher loan repayments, and more expensive imports are now realities that households and companies must navigate. The rupee’s fall underscores the importance of staying alert and planning carefully in today’s unpredictable financial environment.