New Delhi — The Indian Rupee (INR) fell to a record low on Monday, touching ₹90.74 per US dollar, as the ongoing lack of agreement on a tariff deal between India and the United States continued to weigh heavily on investor sentiment. The sharp decline marks one of the steepest single‑day drops of the year and has raised fresh concerns about inflation, trade costs, and the broader economic outlook.
Indian Rupee Hits Record Low Amid Tariff Uncertainty
Currency analysts noted that the Rupee has weakened nearly 12% year‑to‑date, driven by global market volatility, rising import bills, and uncertainty surrounding bilateral trade negotiations. The stalled tariff discussions, which aim to resolve disputes on agricultural goods, technology components, and industrial imports, have created additional pressure on the currency.
🧵 INR vs USD: The Twitter Thread
Did you know the Indian Rupee just crossed a major psychological barrier ?Today, 1 USD = approx 90.74 INR
This number is more than just data—it impacts EVERYTHING.
A thread read & SAVE IT ✅ 👇 #Nifty #Forex #IndianEconomy #StockMarket pic.twitter.com/lZIJv8nUUa— Pk Chaudhary X (@pktradeinn05) December 15, 2025
“The market is reacting to prolonged uncertainty,” said a senior economist at a Mumbai‑based financial firm. “Every week without progress adds more stress to the Rupee, especially when global demand is slowing and crude oil prices remain above $82 per barrel.”
Impact on Trade, Inflation, and Market Confidence
The record low exchange rate is expected to increase India’s import costs, particularly for crude oil, electronics, and machinery. India imports nearly 85% of its crude oil, making the currency’s weakness a direct contributor to rising fuel and transportation prices. Economists warn that inflation, currently at 5.6%, could climb further if the Rupee continues to slide.
Exporters, however, may see short‑term benefits. A weaker Rupee can make Indian goods more competitive in global markets, especially in sectors like textiles, pharmaceuticals, and IT services. Still, industry groups caution that long‑term instability hurts planning and investment.
According to Reuters, US and Indian trade officials have not scheduled the next round of tariff negotiations, raising concerns that the dispute may extend into early 2026. The delay has added to market unease, with foreign investors pulling nearly $1.3 billion from Indian equities over the past month.
Despite the pressure, the Reserve Bank of India (RBI) has not announced any emergency measures. Analysts expect the central bank to intervene only if volatility increases sharply. For now, the Rupee’s trajectory will depend heavily on global market conditions and the pace of diplomatic progress between New Delhi and Washington.
