Rupee Crosses 90 per Dollar: Reasons and Impact
Why in the news
The rupee slid beyond the 90 level against the US dollar, with a day-low of ₹90.29 and a close at ₹90.19.
Key facts
- Fall of 5.5% since April 2025.
- FPIs sold $17.3 billion of Indian equity in 2025, including $800 million in early December.
- The Sensex stayed above 86,000, so equities and the currency moved apart.
| Area | Driver |
|---|---|
| Trade | 50% US tariffs on select goods; record gold and silver imports widen the trade deficit |
| Capital flows | FPI selling and private equity exits during big IPOs |
| Imports | Costly fuel, metals and electronics raise dollar demand |
| Market | Offshore bets against the rupee |
Impact
- Costlier imports add to inflation; overseas study, travel and medical bills rise.
- Exporters and remittance receivers gain.
- A controlled slide can help RBI conserve reserves.
Policy response
- RBI intervened only lightly; authorities seem to favour export competitiveness.
- Next moves depend on India-US trade talks and commodity prices.
Exam angle
- Terms: depreciation, FPI, current account deficit.
- Numbers: 90.29, 90.19, 5.5%, $17.3 billion.