Indian Rupee Slips Further to Record Low Against Dollar

Economy

Updated on Dec - 15 - 2025, 08:27 AM

The Indian rupee has hit yet another historic low against the US dollar, underscoring mounting pressure on the domestic currency and raising alarm among economists, businesses, and everyday savers. On Monday, December 15, 2025, the rupee weakened further, slipping to around ₹90.75 to the dollar, marking one of the steepest stretches of depreciation in recent memory. 

Over the past weeks, the domestic currency has consistently retreated from previous benchmarks, breaching the psychologically significant ₹90 mark and failing to find stable ground. This trend reflects deeper concerns about external demand for dollars, global financial conditions, and persistent uncertainty around key trade negotiations. 

Here’s a closer look at the factors shaping the rupee’s slide:

Trade Negotiation Standstill: Delays in finalizing trade agreements, especially with the US, are weighing on investor confidence and reducing foreign capital inflows.

Foreign Portfolio Outflows: International investors are pulling money out of Indian markets, contributing to downward pressure on the currency.

Strong Dollar Demand: From importers to corporate hedging strategies, demand for US dollars has surged, further challenging the rupee’s strength.

Global Sentiment: Weak global risk appetite and shifting macroeconomic dynamics have made capital flows more volatile. 

The economic implications of a weaker rupee are multifaceted. While exporters may benefit from more competitive pricing internationally, importers face higher costs, particularly in sectors reliant on foreign goods and energy. This can feed into broader inflationary pressures, impacting everything from fuel prices to consumer electronics. Additionally, households with overseas loans or travel plans may feel the effects more acutely. 

Policy responses are also gaining attention. The Reserve Bank of India (RBI) has intervened in forex markets to support the currency, though its actions appear to be geared more toward managing volatility than arresting the decline entirely. At the same time, analysts are watching global economic indicators including inflation data and interest rate decisions for clues on future direction. 

Market reactions have been noticeable beyond the currency itself. Indian share indices have shown caution, with benchmark indices like the Sensex and Nifty reflecting investor nervousness tied to capital flows and rupee weakness. 

For households and businesses alike, the rupee’s slide is more than a statistic it influences everyday prices, borrowing costs, and financial planning. As 2025 draws to a close, economists stress that both global forces and domestic economic policies will play crucial roles in shaping currency trends well into 2026.