New Delhi, Dec 15: Nearly two weeks after slipping past the 90-per-dollar mark, the Indian rupee is edging closer to 91, touching a fresh all-time low against the US dollar.
At the time of filing this report, the rupee was trading at 90.904 per dollar, after hitting an intraday low of 90.957—just short of the 91 level. On a cumulative basis, the domestic currency has depreciated by more than 5 per cent so far this year.
The rupee began 2025 at 85.70 per dollar on January 1, but sustained selling by foreign investors has steadily dragged it lower.
A weaker rupee increases the cost of imports, pushing up prices of goods sourced from abroad. It also raises expenses for Indians travelling, studying, or doing business overseas.
Higher US tariffs: US President Donald Trump has imposed a 50 per cent tariff on Indian imports, a move that could shave 60–80 basis points off India’s GDP growth and widen the fiscal deficit. Lower exports translate into reduced foreign currency inflows, adding pressure on the rupee.
Heavy FII outflows: Since July 2025, Foreign Institutional Investors (FIIs) have sold Indian assets worth over ₹1.55 lakh crore, largely due to concerns surrounding US trade policies. These outflows boost demand for dollars as investors repatriate funds, weakening the rupee.
Rising dollar demand from importers: Companies in sectors such as oil and gold are actively buying dollars for hedging, while other importers are building up dollar reserves amid tariff-related uncertainty. This sustained demand for the greenback continues to weigh on the domestic currency.
