On December 3, 2025, the Indian rupee breached the psychological barrier of 90 against the U.S. dollar, slipping to a record intra-day low of 90.15 before recovering slightly to trade at 90.02.
This sharp depreciation marked a historic moment in currency markets, driven by persistent foreign investor outflows and strong demand for the American currency. The rupee’s fall of 6 paise in early trade highlights the mounting pressure on India’s economy as global uncertainties continue to weigh on sentiment.
Rupee breaches 90 to a dollar: Market reaction
The rupee opened at 89.96 at the interbank foreign exchange and quickly slid past the 90 mark. Traders noted that banks were actively buying dollars at higher levels, while foreign institutional investors (FIIs) continued to pull funds from Indian markets.
Although the decline was cushioned by a weaker dollar index and falling crude oil prices, the rupee still recorded its lowest-ever intraday level. On the previous day, December 2, the currency had already closed at a record low of 89.96, down 43 paise from its earlier session.
Economic impact of rupee depreciation
The breach of the 90 mark has significant implications for India’s economy. A weaker rupee directly raises the cost of imports, especially crude oil, of which India imports over 85 percent of its requirement.
Rising fuel costs can trigger inflation across essential goods and services. Analysts estimate that a 5 percent depreciation in the rupee could push inflation up by 30–35 basis points.
dditionally, gold and silver prices surged in domestic markets, with silver futures touching ₹1,80,748 per kg and gold trading above ₹1,28,000 per 10 grams, reflecting the currency’s weakness.
Expert views on rupee’s fall
According to The Hindu, forex traders believe the rupee’s weakness is likely to persist unless foreign inflows stabilize and global crude prices ease further. They also point out that the Reserve Bank of India may intervene to prevent excessive volatility.
Meanwhile, economists warn that imported inflation could hurt household budgets and widen the current account deficit if the rupee remains under pressure.
With the rupee breaching 90 to a dollar, India faces a challenging period ahead. Policymakers will need to balance currency stability with growth priorities, while businesses and consumers brace for higher costs in the months to come.
