New Delhi: Rupee Plunges to All-Time Low of 90.2 Against US Dollar

The Indian rupee weakened to a historic low of 90.2 against the US dollar on Wednesday, marking the steepest fall ever recorded. Reuters reported that mounting pressure on the currency stems from elevated US tariffs, weak foreign capital inflows, and lingering uncertainty over a bilateral trade deal.

The rupee had already touched its previous record low of 89.9 on Tuesday. In 2025 alone, the currency has depreciated by approximately 5%, putting it on course for its worst annual performance since 2022. This has made the rupee one of the weakest-performing currencies in Asia this year.

Despite the sharp currency volatility, India’s economy continues to show robust growth. Official data released by the National Statistical Office revealed that GDP grew by 8.2% in the July–September quarter, surpassing the 7.8% growth recorded in the previous quarter and significantly higher than the 5.6% expansion seen in the same period last year.

The currency turmoil has been exacerbated by trade tensions with the United States. In August, US President Donald Trump doubled tariffs on certain Indian goods to 50%, citing India’s continued purchase of Russian oil amid the Ukraine war. The move strained bilateral ties and triggered panic in currency markets.

On November 10, President Trump offered reassurance, stating that tariffs on India would be reduced in phases, noting that New Delhi had “substantially reduced” its Russian oil imports and that a “fair trade deal” with India was close at hand.

However, delays in formally announcing the trade agreement and uncertainty over the future of India’s export sector continue to roil markets, according to a Financial Express report.

Compounding the pressure, foreign portfolio investors have pulled out more than $16 billion from Indian equity markets this year. India’s merchandise trade deficit also hit a record high in October.

Meanwhile, the Reserve Bank of India’s Monetary Policy Committee began its three-day meeting on Wednesday. The final decision on any changes to interest rates is scheduled to be announced on Friday.

Source: Vartha Bharathi (translate in english)